Cannot run any Playwright test

Context:

• Playwright Version: 1.20.1
• Operating System: Windows 10
• Node.js version: 16.13.0]
• Browser: All
• Extra:

Describe the bug

A fresh installation of Playwright and attempting to run example spec produces this error:

$ npx playwright test

Running 0 test using 0 worker


Error: tests\example.spec.ts:5:12: Playwright Test did not expect test.beforeEach() to be called here.
Most common reasons include:
- You are calling test.beforeEach() in a configuration file.
- You are calling test.beforeEach() in a file that is imported by the configuration file.
- You have two different versions of @playwright/test. This usually happens
  when one of the dependenices in your package.json depends on @playwright/test.

   at ..\node_modules\@playwright\test\lib\util.js:198

  196 |
  197 | function errorWithLocation(location, message) {
> 198 |   return new Error(`${formatLocation(location)}: ${message}`);
      |          ^
  199 | }
  200 |
  201 | function expectType(receiver, type, matcherName) {

    at errorWithLocation (C:\projects\virtonomy\web_platform_main\e2e\node_modules\@playwright\test\lib\util.js:198:10)
    at TestTypeImpl._ensureCurrentSuite (C:\projects\virtonomy\web_platform_main\e2e\node_modules\@playwright\test\lib\testType.js:78:41)
    at TestTypeImpl._hook (C:\projects\virtonomy\web_platform_main\e2e\node_modules\@playwright\test\lib\testType.js:129:24)
    at Function.beforeEach (C:\projects\virtonomy\web_platform_main\e2e\node_modules\@playwright\test\lib\transform.js:253:12)
    at Object.<anonymous> (C:\projects\virtonomy\web_platform_main\e2e\tests\example.spec.ts:5:12)
    at Module._compile (C:\Projects\virtonomy\web_platform_main\e2e\node_modules\pirates\lib\index.js:136:24)
    at Object.newLoader (C:\Projects\virtonomy\web_platform_main\e2e\node_modules\pirates\lib\index.js:141:7)

=================
 no tests found.

To open last HTML report run:

  npx playwright show-report

package.json

{
  "name": "e2e",
  "version": "1.0.0",
  "description": "",
  "main": "index.js",
  "scripts": {},
  "author": "",
  "license": "ISC",
  "devDependencies": {
    "@playwright/test": "^1.20.1"
  }
}