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I finally got it to work in several steps. First I installed Laravel UI composer require laravel/ui "^1.2" remember it is "1.2" because Laravel version is 6, 2.0 version will throw this error: How to solve problems while installing ui in laravel? Then I created the following folders and files(Only if they don’t exist in your application in resources folder(resources/js/app.js,resources/sass/_variables.scss, and resources/sass/app.scss) as explained here:
https://laravel-news.com/laravel-5-7-resources-directory-changes, [Note that this structure differs from version 7.] I then updated webpack.mix.js as follows:
let mix = require('laravel-mix');
mix.js('resources/js/app.js', 'public/js')
.sass('resources/sass/app.scss', 'public/css');
After that I ran php artisan ui vue that installed vue ui and I finally did npm i && npm run dev and thats all. In case sass-loader throws an error, uninstall and install version 7. That is if you are using Laravel V6 And that is it! Hope this helps someone who might encounter the same.
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I suggest reading the documentation about Laravel Mix. This is a front-end framework baked into the Laravel Framework.
https://laravel.com/docs/7.x/frontend#introduction
I would recommend that you first try this out in a dummy project or different GIT branch.
You can use the following command to generate a basic set-up:
php artisan ui vue