Upgrading to node16 from node14 on AEM-react project does not work

AEM Code and npm start was working fine with node14.

After upgrading to the node16,

npm start prints this message and local is not up.

http://admin:admin@localhost@4502 > AEM not ready

Here is the snippet of npm start logs

Watching ./app-build

AEM sync version 4.0.3

watch over : the directory

Targets: http://admin:admin@localhost@4502 

Exclude: **/jcr_root/*

Interval:300 

clientlib --verbose

start aem-clientlib-generator

working directory C:/directory

processing clientlib: 

write node configuration using serialization format: xml

write clientlib json file:  ..\ui.apps

write clientlib assert txt file (type: js)

write clientlib assert txt file (type: css)

+ jcr_root 

http://admin:admin@localhost@4502 > AEM not ready