diff --git a/docs/generated/packages/express/generators/application.json b/docs/generated/packages/express/generators/application.json
index 10336208f37f7f..0b0bce7e959bd7 100644
--- a/docs/generated/packages/express/generators/application.json
+++ b/docs/generated/packages/express/generators/application.json
@@ -50,11 +50,6 @@
         "type": "string",
         "description": "Frontend project that needs to access this application. This sets up proxy configuration."
       },
-      "babelJest": {
-        "type": "boolean",
-        "description": "Use `babel` instead `ts-jest`.",
-        "default": false
-      },
       "pascalCaseFiles": {
         "type": "boolean",
         "description": "Use pascal case file names.",
diff --git a/docs/generated/packages/jest/generators/jest-project.json b/docs/generated/packages/jest/generators/jest-project.json
index aa49372db0464f..22e23d15d10f8e 100644
--- a/docs/generated/packages/jest/generators/jest-project.json
+++ b/docs/generated/packages/jest/generators/jest-project.json
@@ -48,7 +48,7 @@
       },
       "compiler": {
         "type": "string",
-        "enum": ["tsc", "babel", "swc"],
+        "enum": ["tsc", "swc", "babel"],
         "description": "The compiler to use for source and tests.",
         "default": "tsc"
       },
diff --git a/docs/generated/packages/node/generators/application.json b/docs/generated/packages/node/generators/application.json
index a2bbe09416a603..422914c92d67b1 100644
--- a/docs/generated/packages/node/generators/application.json
+++ b/docs/generated/packages/node/generators/application.json
@@ -54,11 +54,6 @@
         "description": "Frontend project that needs to access this application. This sets up proxy configuration.",
         "x-priority": "important"
       },
-      "babelJest": {
-        "type": "boolean",
-        "description": "Use `babel` instead of `ts-jest`.",
-        "default": false
-      },
       "pascalCaseFiles": {
         "type": "boolean",
         "description": "Use pascal case file names.",
diff --git a/docs/generated/packages/node/generators/library.json b/docs/generated/packages/node/generators/library.json
index 47c5f4a86eab81..6da5b3eac7ad24 100644
--- a/docs/generated/packages/node/generators/library.json
+++ b/docs/generated/packages/node/generators/library.json
@@ -92,11 +92,6 @@
         "description": "The test environment to use if `unitTestRunner` is set to `jest`.",
         "default": "jsdom"
       },
-      "babelJest": {
-        "type": "boolean",
-        "description": "Use `babel` instead of `ts-jest`.",
-        "default": false
-      },
       "pascalCaseFiles": {
         "type": "boolean",
         "description": "Use pascal case file names.",
diff --git a/docs/generated/packages/react/generators/application.json b/docs/generated/packages/react/generators/application.json
index 90006ff44d5d86..976be0866d86d2 100644
--- a/docs/generated/packages/react/generators/application.json
+++ b/docs/generated/packages/react/generators/application.json
@@ -92,8 +92,8 @@
         "default": false,
         "x-priority": "internal"
       },
-      "skipWorkspaceJson": {
-        "description": "Skip updating `workspace.json` with default options based on values provided to this app (e.g. babel, style).",
+      "skipNxJson": {
+        "description": "Skip updating `nx.json` with default options based on values provided to this app.",
         "type": "boolean",
         "default": false,
         "x-priority": "internal"
@@ -155,7 +155,7 @@
       "compiler": {
         "type": "string",
         "description": "The compiler to use.",
-        "enum": ["babel", "swc"],
+        "enum": ["swc", "babel"],
         "default": "babel"
       },
       "skipPackageJson": {
diff --git a/docs/generated/packages/react/generators/host.json b/docs/generated/packages/react/generators/host.json
index 3e6ef743992e19..e2ee2454686c81 100644
--- a/docs/generated/packages/react/generators/host.json
+++ b/docs/generated/packages/react/generators/host.json
@@ -73,7 +73,7 @@
         "default": false,
         "x-priority": "internal"
       },
-      "skipWorkspaceJson": {
+      "skipNxJson": {
         "description": "Skip updating workspace.json with default options based on values provided to this app (e.g. babel, style).",
         "type": "boolean",
         "default": false,
diff --git a/docs/generated/packages/react/generators/library.json b/docs/generated/packages/react/generators/library.json
index 21f89bdf1616f9..ecf86749e7c059 100644
--- a/docs/generated/packages/react/generators/library.json
+++ b/docs/generated/packages/react/generators/library.json
@@ -169,7 +169,7 @@
       },
       "compiler": {
         "type": "string",
-        "enum": ["babel", "swc"],
+        "enum": ["swc", "babel"],
         "default": "babel",
         "description": "Which compiler to use. Only applies to `bundler: 'rollup'`."
       },
diff --git a/docs/generated/packages/react/generators/remote.json b/docs/generated/packages/react/generators/remote.json
index cd99a9e0f414a4..ae32c075dc0969 100644
--- a/docs/generated/packages/react/generators/remote.json
+++ b/docs/generated/packages/react/generators/remote.json
@@ -78,7 +78,7 @@
         "default": false,
         "x-priority": "internal"
       },
-      "skipWorkspaceJson": {
+      "skipNxJson": {
         "description": "Skip updating workspace.json with default options based on values provided to this app (e.g. babel, style).",
         "type": "boolean",
         "default": false,
diff --git a/docs/generated/packages/web/generators/application.json b/docs/generated/packages/web/generators/application.json
index d44bd521eaee4e..74f90cd73df607 100644
--- a/docs/generated/packages/web/generators/application.json
+++ b/docs/generated/packages/web/generators/application.json
@@ -43,8 +43,8 @@
       "compiler": {
         "type": "string",
         "description": "The compiler to use",
-        "enum": ["babel", "swc"],
-        "default": "babel",
+        "enum": ["swc", "babel"],
+        "default": "swc",
         "x-priority": "important"
       },
       "bundler": {
diff --git a/packages/express/src/generators/application/schema.d.ts b/packages/express/src/generators/application/schema.d.ts
index 1ec7eff6ee7ab0..8c69a1cf11c9a7 100644
--- a/packages/express/src/generators/application/schema.d.ts
+++ b/packages/express/src/generators/application/schema.d.ts
@@ -10,7 +10,6 @@ export interface Schema {
   tags?: string;
   linter: Linter;
   frontendProject?: string;
-  babelJest?: boolean;
   js: boolean;
   pascalCaseFiles: boolean;
   standaloneConfig?: boolean;
diff --git a/packages/express/src/generators/application/schema.json b/packages/express/src/generators/application/schema.json
index db3c743ce5f18b..892ce1bbc91c18 100644
--- a/packages/express/src/generators/application/schema.json
+++ b/packages/express/src/generators/application/schema.json
@@ -50,11 +50,6 @@
       "type": "string",
       "description": "Frontend project that needs to access this application. This sets up proxy configuration."
     },
-    "babelJest": {
-      "type": "boolean",
-      "description": "Use `babel` instead `ts-jest`.",
-      "default": false
-    },
     "pascalCaseFiles": {
       "type": "boolean",
       "description": "Use pascal case file names.",
diff --git a/packages/jest/src/generators/jest-project/schema.json b/packages/jest/src/generators/jest-project/schema.json
index a39db66f6bfd5e..2065c58350a53d 100644
--- a/packages/jest/src/generators/jest-project/schema.json
+++ b/packages/jest/src/generators/jest-project/schema.json
@@ -47,7 +47,7 @@
     },
     "compiler": {
       "type": "string",
-      "enum": ["tsc", "babel", "swc"],
+      "enum": ["tsc", "swc", "babel"],
       "description": "The compiler to use for source and tests.",
       "default": "tsc"
     },
diff --git a/packages/next/src/generators/library/library.ts b/packages/next/src/generators/library/library.ts
index b1d6cf2c32b743..cfda6a23a2a926 100644
--- a/packages/next/src/generators/library/library.ts
+++ b/packages/next/src/generators/library/library.ts
@@ -71,36 +71,6 @@ export async function libraryGenerator(host: Tree, rawOptions: Schema) {
   );
   addTsConfigPath(host, `${options.importPath}/server`, [serverEntryPath]);
 
-  updateJson(
-    host,
-    joinPathFragments(options.projectRoot, '.babelrc'),
-    (json) => {
-      if (options.style === '@emotion/styled') {
-        json.presets = [
-          [
-            '@nx/next/babel',
-            {
-              'preset-react': {
-                runtime: 'automatic',
-                importSource: '@emotion/react',
-              },
-            },
-          ],
-        ];
-      } else if (options.style === 'styled-jsx') {
-        // next.js doesn't require the `styled-jsx/babel' plugin as it is already
-        // built-into the `next/babel` preset
-        json.presets = ['@nx/next/babel'];
-        json.plugins = (json.plugins || []).filter(
-          (x) => x !== 'styled-jsx/babel'
-        );
-      } else {
-        json.presets = ['@nx/next/babel'];
-      }
-      return json;
-    }
-  );
-
   updateJson(
     host,
     joinPathFragments(options.projectRoot, 'tsconfig.json'),
diff --git a/packages/node/src/generators/application/application.spec.ts b/packages/node/src/generators/application/application.spec.ts
index d3af66f1d6ed3e..e2af45976adeba 100644
--- a/packages/node/src/generators/application/application.spec.ts
+++ b/packages/node/src/generators/application/application.spec.ts
@@ -343,31 +343,6 @@ describe('app', () => {
     });
   });
 
-  describe('--babelJest', () => {
-    it('should use babel for jest', async () => {
-      await applicationGenerator(tree, {
-        name: 'myNodeApp',
-        tags: 'one,two',
-        babelJest: true,
-      } as Schema);
-
-      expect(tree.read(`my-node-app/jest.config.ts`, 'utf-8'))
-        .toMatchInlineSnapshot(`
-        "/* eslint-disable */
-        export default {
-          displayName: 'my-node-app',
-          preset: '../jest.preset.js',
-          testEnvironment: 'node',
-          transform: {
-            '^.+\\\\.[tj]s$': 'babel-jest',
-          },
-          moduleFileExtensions: ['ts', 'js', 'html'],
-          coverageDirectory: '../coverage/my-node-app',
-        };
-        "
-      `);
-    });
-  });
   describe('--js flag', () => {
     it('should generate js files instead of ts files', async () => {
       await applicationGenerator(tree, {
diff --git a/packages/node/src/generators/application/schema.d.ts b/packages/node/src/generators/application/schema.d.ts
index aec0248728ffc3..1c2ed3a94bda36 100644
--- a/packages/node/src/generators/application/schema.d.ts
+++ b/packages/node/src/generators/application/schema.d.ts
@@ -10,7 +10,6 @@ export interface Schema {
   linter?: Linter;
   tags?: string;
   frontendProject?: string;
-  babelJest?: boolean;
   js?: boolean;
   pascalCaseFiles?: boolean;
   setParserOptionsProject?: boolean;
diff --git a/packages/node/src/generators/application/schema.json b/packages/node/src/generators/application/schema.json
index 92b9f480109267..d7cafa3e3dd648 100644
--- a/packages/node/src/generators/application/schema.json
+++ b/packages/node/src/generators/application/schema.json
@@ -54,11 +54,6 @@
       "description": "Frontend project that needs to access this application. This sets up proxy configuration.",
       "x-priority": "important"
     },
-    "babelJest": {
-      "type": "boolean",
-      "description": "Use `babel` instead of `ts-jest`.",
-      "default": false
-    },
     "pascalCaseFiles": {
       "type": "boolean",
       "description": "Use pascal case file names.",
diff --git a/packages/node/src/generators/library/library.spec.ts b/packages/node/src/generators/library/library.spec.ts
index 3b4395165ec5d2..ec9a24d19db002 100644
--- a/packages/node/src/generators/library/library.spec.ts
+++ b/packages/node/src/generators/library/library.spec.ts
@@ -448,30 +448,6 @@ describe('lib', () => {
     });
   });
 
-  describe(`--babelJest`, () => {
-    it('should use babel for jest', async () => {
-      await libraryGenerator(tree, {
-        name: 'myLib',
-        babelJest: true,
-      } as Schema);
-
-      expect(tree.read(`libs/my-lib/jest.config.ts`, 'utf-8'))
-        .toMatchInlineSnapshot(`
-        "/* eslint-disable */
-        export default {
-          displayName: 'my-lib',
-          preset: '../../jest.preset.js',
-          testEnvironment: 'node',
-          transform: {
-            '^.+\\\\.[tj]s$': 'babel-jest',
-          },
-          moduleFileExtensions: ['ts', 'js', 'html'],
-          coverageDirectory: '../../coverage/libs/my-lib',
-        };
-        "
-      `);
-    });
-  });
   describe('--js flag', () => {
     it('should generate js files instead of ts files', async () => {
       await libraryGenerator(tree, {
diff --git a/packages/node/src/generators/library/library.ts b/packages/node/src/generators/library/library.ts
index f63a6e4f055d0c..b2b3e359c84837 100644
--- a/packages/node/src/generators/library/library.ts
+++ b/packages/node/src/generators/library/library.ts
@@ -51,7 +51,6 @@ export async function libraryGenerator(tree: Tree, schema: Schema) {
   const libraryInstall = await jsLibraryGenerator(tree, {
     ...schema,
     bundler: schema.buildable ? 'tsc' : 'none',
-    includeBabelRc: schema.babelJest,
     importPath: options.importPath,
     testEnvironment: 'node',
     skipFormat: true,
diff --git a/packages/node/src/generators/library/schema.d.ts b/packages/node/src/generators/library/schema.d.ts
index 837f21a69a9cd8..382708c7daf99e 100644
--- a/packages/node/src/generators/library/schema.d.ts
+++ b/packages/node/src/generators/library/schema.d.ts
@@ -14,7 +14,6 @@ export interface Schema {
   importPath?: string;
   testEnvironment?: 'jsdom' | 'node';
   rootDir?: string;
-  babelJest?: boolean;
   js?: boolean;
   pascalCaseFiles?: boolean;
   strict?: boolean;
diff --git a/packages/node/src/generators/library/schema.json b/packages/node/src/generators/library/schema.json
index c66e679f4d005e..ff01ee207f55d1 100644
--- a/packages/node/src/generators/library/schema.json
+++ b/packages/node/src/generators/library/schema.json
@@ -92,11 +92,6 @@
       "description": "The test environment to use if `unitTestRunner` is set to `jest`.",
       "default": "jsdom"
     },
-    "babelJest": {
-      "type": "boolean",
-      "description": "Use `babel` instead of `ts-jest`.",
-      "default": false
-    },
     "pascalCaseFiles": {
       "type": "boolean",
       "description": "Use pascal case file names.",
diff --git a/packages/react/src/generators/application/application.spec.ts b/packages/react/src/generators/application/application.spec.ts
index 04eae30f6480de..d51711c0a48ea3 100644
--- a/packages/react/src/generators/application/application.spec.ts
+++ b/packages/react/src/generators/application/application.spec.ts
@@ -849,12 +849,12 @@ describe('app', () => {
     ).toBeUndefined();
   });
 
-  describe('--skipWorkspaceJson', () => {
+  describe('--skipNxJson', () => {
     it('should update workspace with defaults when --skipprojectsConfigurations=false', async () => {
       await applicationGenerator(appTree, {
         ...schema,
         style: 'styled-components',
-        skipWorkspaceJson: false,
+        skipNxJson: false,
       });
 
       const nxJson = readNxJson(appTree);
diff --git a/packages/react/src/generators/application/lib/set-defaults.ts b/packages/react/src/generators/application/lib/set-defaults.ts
index cad40197967570..0406985f151e77 100644
--- a/packages/react/src/generators/application/lib/set-defaults.ts
+++ b/packages/react/src/generators/application/lib/set-defaults.ts
@@ -2,7 +2,7 @@ import { readNxJson, Tree, updateNxJson } from '@nx/devkit';
 import { NormalizedSchema } from '../schema';
 
 export function setDefaults(host: Tree, options: NormalizedSchema) {
-  if (options.skipWorkspaceJson) {
+  if (options.skipNxJson) {
     return;
   }
 
diff --git a/packages/react/src/generators/application/schema.d.ts b/packages/react/src/generators/application/schema.d.ts
index ab83ef80b1ca71..7b8ae279ddbac1 100644
--- a/packages/react/src/generators/application/schema.d.ts
+++ b/packages/react/src/generators/application/schema.d.ts
@@ -14,7 +14,7 @@ export interface Schema {
   pascalCaseFiles?: boolean;
   classComponent?: boolean;
   routing?: boolean;
-  skipWorkspaceJson?: boolean;
+  skipNxJson?: boolean;
   js?: boolean;
   globalCss?: boolean;
   strict?: boolean;
diff --git a/packages/react/src/generators/application/schema.json b/packages/react/src/generators/application/schema.json
index 5eb0249f8015dc..b57c3272e9c49f 100644
--- a/packages/react/src/generators/application/schema.json
+++ b/packages/react/src/generators/application/schema.json
@@ -98,8 +98,8 @@
       "default": false,
       "x-priority": "internal"
     },
-    "skipWorkspaceJson": {
-      "description": "Skip updating `workspace.json` with default options based on values provided to this app (e.g. babel, style).",
+    "skipNxJson": {
+      "description": "Skip updating `nx.json` with default options based on values provided to this app.",
       "type": "boolean",
       "default": false,
       "x-priority": "internal"
@@ -161,7 +161,7 @@
     "compiler": {
       "type": "string",
       "description": "The compiler to use.",
-      "enum": ["babel", "swc"],
+      "enum": ["swc", "babel"],
       "default": "babel"
     },
     "skipPackageJson": {
diff --git a/packages/react/src/generators/host/schema.d.ts b/packages/react/src/generators/host/schema.d.ts
index e8c63c6e83c032..3a524244ef30a7 100644
--- a/packages/react/src/generators/host/schema.d.ts
+++ b/packages/react/src/generators/host/schema.d.ts
@@ -15,7 +15,7 @@ export interface Schema {
   remotes?: string[];
   setParserOptionsProject?: boolean;
   skipFormat?: boolean;
-  skipWorkspaceJson?: boolean;
+  skipNxJson?: boolean;
   ssr?: boolean;
   strict?: boolean;
   style: SupportedStyles;
diff --git a/packages/react/src/generators/host/schema.json b/packages/react/src/generators/host/schema.json
index 628dcc09201646..8f7fc3e742e8e5 100644
--- a/packages/react/src/generators/host/schema.json
+++ b/packages/react/src/generators/host/schema.json
@@ -79,7 +79,7 @@
       "default": false,
       "x-priority": "internal"
     },
-    "skipWorkspaceJson": {
+    "skipNxJson": {
       "description": "Skip updating workspace.json with default options based on values provided to this app (e.g. babel, style).",
       "type": "boolean",
       "default": false,
diff --git a/packages/react/src/generators/library/files/common/.babelrc__tmpl__ b/packages/react/src/generators/library/files/common/.babelrc__tmpl__
deleted file mode 100644
index b4962b709b3c56..00000000000000
--- a/packages/react/src/generators/library/files/common/.babelrc__tmpl__
+++ /dev/null
@@ -1,16 +0,0 @@
-{
-  "presets": [
-    [
-      "@nx/react/babel", {
-        "runtime": "automatic",
-        "useBuiltIns": "usage"
-        <% if (style === '@emotion/styled') { %>,"importSource": "@emotion/react"<% } %>
-      }
-    ]
-  ],
-  "plugins": [
-    <% if (style === 'styled-components') { %>["styled-components", { "pure": true, "ssr": true }]<% } %>
-    <% if (style === 'styled-jsx') { %>"styled-jsx/babel"<% } %>
-    <% if (style === '@emotion/styled') { %>"@emotion/babel-plugin"<% } %>
-  ]
-}
diff --git a/packages/react/src/generators/library/lib/create-files.ts b/packages/react/src/generators/library/lib/create-files.ts
index 55579e7379bcc8..045e3d231364d1 100644
--- a/packages/react/src/generators/library/lib/create-files.ts
+++ b/packages/react/src/generators/library/lib/create-files.ts
@@ -5,6 +5,7 @@ import {
   names,
   offsetFromRoot,
   toJS,
+  writeJson,
 } from '@nx/devkit';
 import { getRelativePathToRootTsConfig } from '@nx/js';
 
@@ -37,10 +38,34 @@ export function createFiles(host: Tree, options: NormalizedSchema) {
       options.projectRoot,
       substitutions
     );
+  }
 
-    if (host.exists(joinPathFragments(options.projectRoot, '.babelrc'))) {
-      host.delete(joinPathFragments(options.projectRoot, '.babelrc'));
-    }
+  if (options.bundler === 'rollup' && options.compiler === 'babel') {
+    host.delete(joinPathFragments(options.projectRoot, '.babelrc'));
+    writeJson(host, joinPathFragments(options.projectRoot, '.babelrc'), {
+      presets: [
+        [
+          '@nx/react/babel',
+          {
+            runtime: 'automatic',
+            useBuiltIns: 'usage',
+            importSource:
+              options.style === '@emotion/styled'
+                ? '@emotion/react'
+                : undefined,
+          },
+        ],
+      ],
+      plugins: [
+        options.style === 'styled-components'
+          ? ['styled-components', { pure: true, ssr: true }]
+          : undefined,
+        options.style === 'styled-jsx' ? 'styled-jsx/babel' : undefined,
+        options.style === '@emotion/styled'
+          ? '@emotion/babel-plugin'
+          : undefined,
+      ].filter(Boolean),
+    });
   }
 
   if (!options.publishable && !options.buildable) {
diff --git a/packages/react/src/generators/library/schema.json b/packages/react/src/generators/library/schema.json
index b8cea3a24e0603..2686b11886adf6 100644
--- a/packages/react/src/generators/library/schema.json
+++ b/packages/react/src/generators/library/schema.json
@@ -172,7 +172,7 @@
     },
     "compiler": {
       "type": "string",
-      "enum": ["babel", "swc"],
+      "enum": ["swc", "babel"],
       "default": "babel",
       "description": "Which compiler to use. Only applies to `bundler: 'rollup'`."
     },
diff --git a/packages/react/src/generators/remote/schema.d.ts b/packages/react/src/generators/remote/schema.d.ts
index 2fa825a4e5791d..424385aa051bbf 100644
--- a/packages/react/src/generators/remote/schema.d.ts
+++ b/packages/react/src/generators/remote/schema.d.ts
@@ -17,7 +17,7 @@ export interface Schema {
   routing?: boolean;
   setParserOptionsProject?: boolean;
   skipFormat: boolean;
-  skipWorkspaceJson?: boolean;
+  skipNxJson?: boolean;
   ssr?: boolean;
   strict?: boolean;
   style: SupportedStyles;
diff --git a/packages/react/src/generators/remote/schema.json b/packages/react/src/generators/remote/schema.json
index 7e8b9acb9b4fae..bac051c1864345 100644
--- a/packages/react/src/generators/remote/schema.json
+++ b/packages/react/src/generators/remote/schema.json
@@ -84,7 +84,7 @@
       "default": false,
       "x-priority": "internal"
     },
-    "skipWorkspaceJson": {
+    "skipNxJson": {
       "description": "Skip updating workspace.json with default options based on values provided to this app (e.g. babel, style).",
       "type": "boolean",
       "default": false,
diff --git a/packages/web/src/generators/application/schema.json b/packages/web/src/generators/application/schema.json
index 5ce0957d30e931..18045d87215da0 100644
--- a/packages/web/src/generators/application/schema.json
+++ b/packages/web/src/generators/application/schema.json
@@ -46,8 +46,8 @@
     "compiler": {
       "type": "string",
       "description": "The compiler to use",
-      "enum": ["babel", "swc"],
-      "default": "babel",
+      "enum": ["swc", "babel"],
+      "default": "swc",
       "x-priority": "important"
     },
     "bundler": {