create react app not picking up .env files?

With create react app, you need to prefix REACT_APP_ to the variable name. ex:

REACT_APP_API_URL=http://localhost:3000/api
REACT_APP_CALLBACK_URL=http://localhost:3005/callback

CRA Docs on Adding Custom Environment Variables:

Note: You must create custom environment variables beginning with REACT_APP_. Any other variables except NODE_ENV will be ignored to avoid accidentally exposing a private key on the machine that could have the same name