Mongoose "Options not supported" - node.js

Question

I have all these 'not supported' options error when I use yarn start. The project utilizes MERN stack. Based on my google research I'm pretty sure it has to do with the Mongoose setting options, but I don't know where to look or next steps to figure the problem out.
Error page:
Here is my server.js
//Bring in Depedencies
const express = require("express");
const bodyParser = require("body-parser");
const mongoose = require("mongoose");
const routes = require("./routes");
const app = express();
const PORT = process.env.PORT || 3001;
//Define middleware
app.use(bodyParser.urlencoded({ extended: true}));
app.use(bodyParser.json());
//Serve up static assets on heroku
if(process.env.NODE_ENV === "production") {
app.use(express.static("client/build"));
}
//Add routes, both API and view
app.use(routes);
//Connect to the Mongo DB
mongoose.connect("mongodb://localhost:27017/hotsheetmedical", { useNewUrlParser: true });
//Start the API Server
app.listen(PORT, function() {
console.log(`🌎 ==> API Server now listening on PORT ${PORT}!`);
})
As far as my package.json. It may be because of that, as I have two package.json. One was created when I cloned the git repository. The other was created with create-react-app. I was instructed to do that, but pretty sure that's causing problems...or will if it isn't already.
Here is the package.json which is on the main level with my server.js
{
"dependencies": {
"axios": "^0.18.0",
"body-parser": "^1.18.3",
"express": "^4.16.4",
"express-router": "^0.0.1",
"if-env": "^1.0.4",
"mongod": "^2.0.0",
"mongoose": "^5.4.0",
"react": "^16.7.0",
"react-dom": "^16.7.0",
"react-router": "^4.3.1",
"react-router-dom": "^4.3.1",
"reactstrap": "^6.5.0"
},
"scripts": {
"start": "node server.js"
},
"name": "hotsheetmedical",
"version": "1.0.0",
"main": "server.js",
"devDependencies": {},
"author": "",
"license": "ISC",
"description": ""
}
Here is the package.json that was created with Create-react-app and is in the client folder
{
"name": "hotsheetmedical",
"version": "0.1.0",
"private": true,
"dependencies": {
"react": "^16.6.3",
"react-dom": "^16.6.3",
"react-scripts": "2.1.1"
},
"scripts": {
"start": "react-scripts start",
"build": "react-scripts build",
"test": "react-scripts test",
"eject": "react-scripts eject"
},
"eslintConfig": {
"extends": "react-app"
},
"browserslist": [
">0.2%",
"not dead",
"not ie <= 11",
"not op_mini all"
]
}
Please let me know if there is anything else I can post that would be helpful. And also thanks for guiding me. I'm sure it's a silly newbie mistake, that I just can't see.