jest fails with @react-native/polyfills/error-guard.js after upgrade to RN 0.64.0 and react 17.0.1

Environment

System: OS: Linux 5.4 Ubuntu 18.04.5 LTS (Bionic Beaver) CPU: (8) x64 Intel® Core™ i7-8550U CPU @ 1.80GHz Memory: 1.29 GB / 15.52 GB Shell: 4.4.20 - /bin/bash Binaries: Node: 14.5.0 - ~/.nvm/versions/node/v14.5.0/bin/node Yarn: 1.22.5 - /usr/bin/yarn npm: 6.14.9 - ~/.nvm/versions/node/v14.5.0/bin/npm Watchman: 20200920.192359.0 - /usr/local/bin/watchman SDKs: Android SDK: API Levels: 19, 24, 25, 27, 28, 29, 30 Build Tools: 28.0.3, 29.0.2, 29.0.3, 30.0.0 System Images: android-22 | Google APIs Intel x86 Atom, android-25 | Google APIs Intel x86 Atom, android-28 | Google Play Intel x86 Atom Android NDK: Not Found IDEs: Android Studio: Not Found Languages: Java: 11.0.10 - /usr/bin/javac npmPackages: @react-native-community/cli: Not Found react: 17.0.1 => 17.0.1 react-native: 0.64.0 => 0.64.0 npmGlobalPackages: react-native: Not Found

Things I’ve done to figure out my issue

did react-native upgrade which upgraded the appplication

Upgrading version

react-native 0.64.0 react 17.0.1

Description

After the upgrade, I did yarn test but all tests fail with error:

/node_modules/@react-native/polyfills/error-guard.js:14
    type ErrorHandler = (error: mixed, isFatal: boolean) => void;
         ^^^^^^^^^^^^

    SyntaxError: Unexpected identifier