Local storage only supports storing string. So when you try storing an object like that, it won't work as expected. All you need to do, is stringify the object first:

localStorage.setItem('response', JSON.stringify(parseJwt(JSON.stringify(response.data.token))));

And the reason why you're seeing [object Object], is that [object Object] is the default string representation of a JavaScript Object. You can read more about here https://stackoverflow.com/questions/4750225/what-does-object-object-mean#:~:text=%5Bobject%20Object%5D%20is%20the%20default%20string%20representation%20of%20a%20JavaScript,alert(o)%3B%20%2F%2F%20foo