Thus, running the command: npm link <path_to_local_library>/node_modules/react, eg. in my case npm link ../../libraries/core/decipher/node_modules/react from the project directory has fixed the issue.

I had this issue when I used npm link to install my local library, which I've built using cra. I found the answer here. Which literally says:
This problem can also come up when you use npm link or an equivalent. In that case, your bundler might “see” two Reacts — one in application folder and one in your library folder. Assuming 'myapp' and 'mylib' are sibling folders, one possible fix is to run 'npm link ../myapp/node_modules/react' from 'mylib'. This should make the library use the application’s React copy.
Thus, running the command: npm link <path_to_local_library>/node_modules/react, eg. in my case npm link ../../libraries/core/decipher/node_modules/react from the project directory has fixed the issue.

In My Case The Solution Was- 1. Starting the Function Name With capital Letter 2. Following that, i had to put the function name inside like this `< IncrementFunction />`. That has solved my problem.

You can only call hooks from React functions.
Just convert the component to a functional component.

In my case I had to move the const inside my function, which instantly solved the problem and it worked good after.