Trying to do testing with jest and jest-dom, both of them are installed. However I get “Cannot find module @testing-library/jest-dom” when trying to do a simple test in index.test.jsx

I also have jest-setup.js where I import import '@testing-library/jest-dom/extend-expect';

In my jest.config.js I have specified setupFilesAfterEnv. setupFilesAfterEnv: ['<rootDir>/jest.setup.js'],


jest.config.mjs

import nextJest from 'next/jest.js'
 
const createJestConfig = nextJest({
  // Provide the path to your Next.js app to load next.config.js and .env files in your test environment
  dir: './',
})
 
// Add any custom config to be passed to Jest
/** @type {import('jest').Config} */
const config = {
  // Add more setup options before each test is run
  
  setupFilesAfterEnv: ['<rootDir>/jest.setup.js'],
  testEnvironment: 'jest-environment-jsdom',
}
 
// createJestConfig is exported this way to ensure that next/jest can load the Next.js config which is async
export default createJestConfig(config)

index.test.jsx

import '@testing-library/jest-dom';
describe("hello" , () => {
    it("hello", () => {});
})

How can i solve it?

Thanks in Advance