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Strange error throw: "ERROR TypeError: defaults$2 is not a constructor"

See original GitHub issue

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Current behavior I have tried all the following

Followed the installation instructions for current version (1.9.8) and the previous version (1.9.7)
Upgraded from Angular 5.2 to 6.1.9
Deleted node_modules and reinstalled from scratch

However I get the following error every time:

ERROR TypeError: defaults$2 is not a constructor
    at new TagInputComponent (ngx-chips.js:1458)
    at createClass (core.js:11729)
    at createDirectiveInstance (core.js:11559)
    at createViewNodes (core.js:13100)
    at createEmbeddedView (core.js:12959)
    at callWithDebugContext (core.js:14460)
    at Object.debugCreateEmbeddedView [as createEmbeddedView] (core.js:13740)
    at TemplateRef_.createEmbeddedView (core.js:11064)
    at ViewContainerRef_.createEmbeddedView (core.js:10845)
    at NgIf._updateView (common.js:3878)

With line 1458 looking like:

this.separatorKeys = new defaults$2().separatorKeys;

Expected behavior I would expect no error and the component to render. My assumption is either a version clash or I am not initialising the library properly.

Minimal reproduction of the problem with instructions (if applicable)

What do you use to build your app?. Please specify the version Angular CLI, output from np --version

Angular CLI: 6.2.5 Node: 10.11.0 OS: win32 x64 Angular: 6.1.9 … animations, common, compiler, compiler-cli, core, forms … http, language-service, platform-browser … platform-browser-dynamic, router