npm engine unsupported/not compatible

[cookiepirate]

When I try to run these commands:
cd ~/headless-commerce-demo/third_party/storefront
source set_env.sh
npm install
npm run dev

I get error like this:

npm WARN old lockfile
npm ERR! code EBADENGINE
npm ERR! engine Unsupported engine
npm ERR! engine Not compatible with your version of node/npm: [email protected]
npm ERR! notsup Not compatible with your version of node/npm: [email protected]
npm ERR! notsup Required: {"node":">=12 <=14","npm":"<=6"}
npm ERR! notsup Actual: {"npm":"8.19.1","node":"v16.4.0"}

The issue might be with this part in package.json

"engines": {
"node": ">=12 <=14",
"npm": "<=6"
}

I am unable to resolve it. Please help.

Edit: I am also uploading the log file if someone needs more information.
2022-09-10T20_08_59_689Z-debug-0.log