diff --git a/packages/react-scripts/README-imodeljs.md b/packages/react-scripts/README-imodeljs.md
index 5f7d703179e..d72ab0f91e1 100644
--- a/packages/react-scripts/README-imodeljs.md
+++ b/packages/react-scripts/README-imodeljs.md
@@ -10,14 +10,13 @@ Current upstream is `react-scripts@5.0.1`, a diff of upstream and this fork can
 
   > Note: These configuration variables are an extension of the [Advanced Configurations](https://create-react-app.dev/docs/advanced-configuration) supported by create-react-app.
 
-  | Variable                | Development | Production | Usage                                                                                                                                                                                                |
-  | ----------------------- | ----------- | ---------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
-  | USE_FAST_SASS           | ✅ Used     | ✅ Used    | When set to `true`, use the `fast-sass-loader` instead of `sass-loader`. This helps with long build times on smaller machines attempting to build an app with a large amount of scss/sass files.         |
-  | USE_FULL_SOURCEMAP      | ✅ Used     | 🚫 Ignored | When set to `true`, the sourcemaps generated use `source-map` instead of `cheap-module-source-map`. This is known to cause out-of-memory errors but gives full fidelity source maps in debug builds. |
-  | TRANSPILE_DEPS          | ✅ Used     | ✅ Used    | When set to `false`, webpack will not run babel on anything in node_modules. Transpiling dependencies can be costly, and is often not necessary when targeting newer browsers. |
-  | DISABLE_TERSER          | 🚫 Ignored  | ✅ Used    | When set to `true`, skips all minification. Useful for PR builds and test apps. |
-  | DISABLE_COPY_ASSETS     | ✅ Used     | ✅ Used    | When set to `true`, skips applying the copy plugin to extract assets from @bentley or @itwinjs packages. |
-  | USING_NPM               | ✅ Used     | ✅ Used    | When set to `true`, indicates that the application uses npm instead of pnpm. This disables a pnpm workaround while copying assets. (The pnpm workaround prevents assets copying from working in npm.) Ignored if `DISABLE_COPY_ASSETS` is `true`. |
+  | Variable            | Development | Production | Usage                                                                                                                                                                                                |
+  | ------------------- | ----------- | ---------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
+  | USE_FAST_SASS       | ✅ Used     | ✅ Used    | When set to `true`, use the `fast-sass-loader` instead of `sass-loader`. This helps with long build times on smaller machines attempting to build an app with a large amount of scss/sass files.     |
+  | USE_FULL_SOURCEMAP  | ✅ Used     | 🚫 Ignored | When set to `true`, the sourcemaps generated use `source-map` instead of `cheap-module-source-map`. This is known to cause out-of-memory errors but gives full fidelity source maps in debug builds. |
+  | TRANSPILE_DEPS      | ✅ Used     | ✅ Used    | When set to `false`, webpack will not run babel on anything in node_modules. Transpiling dependencies can be costly, and is often not necessary when targeting newer browsers.                       |
+  | DISABLE_TERSER      | 🚫 Ignored  | ✅ Used    | When set to `true`, skips all minification. Useful for PR builds and test apps.                                                                                                                      |
+  | DISABLE_COPY_ASSETS | ✅ Used     | ✅ Used    | When set to `true`, skips applying the copy plugin to extract assets from @bentley or @itwinjs packages.                                                                                             |
 
 - Typing changes
 
diff --git a/packages/react-scripts/config/webpack.config.js b/packages/react-scripts/config/webpack.config.js
index 80a5f7a2b29..41415554ce8 100644
--- a/packages/react-scripts/config/webpack.config.js
+++ b/packages/react-scripts/config/webpack.config.js
@@ -55,8 +55,6 @@ const shouldMinify = process.env.DISABLE_TERSER !== 'true';
 
 const shouldCopyAssets = process.env.DISABLE_COPY_ASSETS !== 'true';
 
-const isUsingNpm = process.env.USING_NPM === 'true';
-
 // End iModel.js Changes block
 
 // Source maps are resource heavy and can cause out of memory issue for large source files.
@@ -159,8 +157,8 @@ module.exports = function (webpackEnv) {
         from: "**/public/**",
         noErrorOnMissing: true,
         context: path.dirname(require.resolve(`${paths.appNodeModules}/${dependency}/package.json`)),
-        globOptions: isUsingNpm ? undefined : {
-          ignore: ["**/node_modules/**"],
+        globOptions: {
+          ignore: ["/node_modules/**", "**/index.html"],
         },
         to({ absoluteFilename }) {
           const regex = new RegExp("(public(?:\\\\|\/))(.*)");
diff --git a/packages/react-scripts/package.json b/packages/react-scripts/package.json
index 6b1aa7ae016..6e90b05eb11 100644
--- a/packages/react-scripts/package.json
+++ b/packages/react-scripts/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@bentley/react-scripts",
-  "version": "5.0.4",
+  "version": "5.0.5",
   "description": "iTwin.js configuration and scripts for Create React App.",
   "repository": {
     "type": "git",