Problem with setting Cookie with useQuery – Reactjs

It is my first time using useQuery and I don’t even know even if the problem is useQuery related or not but I am having trouble with setting Cookie for further user interactions.

Login function starts in a LoginForm.tsx which uses useForm()

  const { mutate: login, isLoading } = useLoginMutation();

  const {
    register,
    handleSubmit,
    formState: { errors },
  } = useForm<LoginInputType>();


  function onSubmit({ email, password, remember_me }: LoginInputType) {
    login({
      email,
      password,
      remember_me,
    });
    console.log(email, password, remember_me, 'data');
  }

this is use-login.tsx where useLoginMutation exists. useLoginMutation runs login function.

async function login(input: LoginInputType) {
  return http.post(API_ENDPOINTS.LOGIN, input);
}

export const useLoginMutation = () => {
  const { authorize, closeModal } = useUI();
  return useMutation((input: LoginInputType) => login(input), {
    onSuccess: (data: any) => {
      console.log(data); //undefined
      Cookies.set('auth_token', data.token);
      authorize();
      closeModal();
    },
    onError: (data) => {
      console.log(data, 'login error response');
    },
  });
};

Here is the http function which login() uses

const http = axios.create({
  baseURL: process.env.NEXT_PUBLIC_REST_API_ENDPOINT,
  timeout: 30000,
  headers: {
    Accept: 'application/json',
    'Content-Type': 'application/json',
  },
});

// Change request data/error here
http.interceptors.request.use(
  (config) => {
    const token = getToken();
    console.log(token + ' from http.ts');
    config.headers = {
      ...config.headers,
      Authorization: `Bearer ${token ? token : ''}`,
    };
    return config;
  },
  (error) => {
    return Promise.reject(error);
  }
);


 //this is getToken() which I imported
export const getToken = () => {
  if (typeof window === undefined) {
    return null;
  }
  return Cookies.get('auth_token');
};

Since my frontend uses cookies I set cokies for my backend as well

userController.js

exports.login = asyncHandler(async (req, res, next) => {
  const user = await User.findOne({ email: req.body.email });

  if (!user || !(await bcrypt.compare(req.body.password, user.password))) {
    return next(new ApiError('Incorrect email or password', 401));
  }
  // 3) generate token
  const token = await createToken(user._id);

  // Delete password from response
  delete user._doc.password;

  // 4) set cookie
  res.cookie('auth_token', token, {
    httpOnly: true,
    maxAge: 72 * 60 * 60 * 1000,
  });

  // 5) send response to client side
  res.status(200).json({ data: user, token });
});

When I run login from postman I can see user object and Bearer Token and I can use other user function which want autherization. I can see them when I login from front end as well and I can see SetHeader in response on Network tab too but my I cant set cookie for frontend . Console.logs won’t log response data and cookie wont be set properly. I tried and could not react returned object at all. I feel like I am missing something very fundemantal and basic but can’t figure it out.