What does the 'HPM error occurred while proxying request' typically indicate in the context of webpack dev server?

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What does the 'HPM error occurred while proxying request' typically indicate in the context of webpack dev server?
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This error usually signifies that the webpack dev server's proxying mechanism – designed to serve your development build from a different port – is encountering a problem. It often points to issues with the server configuration, network connectivity, or a misconfigured proxy target.