- babel transpiles ES6/7+ JavaScript syntax to the least-common-denominator of the browsers you designate as supported by your application
- core-js provides implementations of features that are not supported in older browsers -- things like array methods that cannot simply be transpiled
- caniuse-lite is a database of supported browser features to determine what needs to be transpiled and when
This toolchain allows developers to write code with the latest language features (which usually results in simpler, more elegant code) while seamlessly supporting legacy browsers as needed. If you decide to drop support for an older browser, you can simply remove it from your browserslist instead of going through all your code to figure out which hacks you put in just for that browser. It takes a ton of cycles out of development googling "can I use feature X in browser Y".
Prior to Rails 6, asset precompilation was powered by Sprockets by default. Sprockets still bundled many analogous libraries, just hidden in ruby gems instead of node_modules. For example, if you want to use SASS then you need a library that compiles SASS to CSS -- whether it's node-sass on your list or the sassc gem.
As noted in other comments, very little of this code is actually loaded in the frontend by end users.