Problem with Visual Studio Code using "react-jsx" as jsx value with create-react-app

I'm struggling with following "error" in VSCode :

Argument for '--jsx' option must be: 'preserve', 'react-native', 'react'

Hence, react-scripts (create-react-app) automatically sets the jsx key to react-jsx value, when react value seems to work.

Actually, the code works perfectly and displays the page I want, but the IDE is underlining kinda everything as errors, saying :

Cannot use JSX unless the '--jsx' flag is provided.

Here is my tsconfig.json :

{
  "compilerOptions": {
    "target": "es5",
    "lib": [
      "dom",
      "dom.iterable",
      "esnext"
    ],
    "allowJs": true,
    "skipLibCheck": true,
    "esModuleInterop": true,
    "allowSyntheticDefaultImports": true,
    "strict": true,
    "forceConsistentCasingInFileNames": true,
    "noFallthroughCasesInSwitch": true,
    "module": "esnext",
    "moduleResolution": "node",
    "resolveJsonModule": true,
    "isolatedModules": true,
    "noEmit": true,
    "jsx": "react-jsx"
  },
  "include": [
    "src"
  ]
}

, and my package.json (default one provided by create-react-app + packages updated) :

{
  "name": "front-office",
  "version": "0.1.0",
  "private": true,
  "dependencies": {
    "@testing-library/jest-dom": "^5.11.6",
    "@testing-library/react": "^11.2.2",
    "@testing-library/user-event": "^12.2.2",
    "@types/jest": "^26.0.15",
    "@types/node": "^14.14.9",
    "@types/react": "^17.0.0",
    "@types/react-dom": "^17.0.0",
    "bootstrap": "^4.5.3",
    "react": "^17.0.1",
    "react-bootstrap": "^1.4.0",
    "react-dom": "^17.0.1",
    "react-scripts": "4.0.1",
    "typescript": "^4.1.2",
    "web-vitals": "^1.0.1"
  },
  "scripts": {
    "start": "react-scripts start",
    "build": "react-scripts build",
    "test": "react-scripts test",
    "eject": "react-scripts eject"
  },
  "eslintConfig": {
    "extends": [
      "react-app",
      "react-app/jest"
    ]
  },
  "browserslist": {
    "production": [
      ">0.2%",
      "not dead",
      "not op_mini all"
    ],
    "development": [
      "last 1 chrome version",
      "last 1 firefox version",
      "last 1 safari version"
    ]
  }
}

I'm using the latest version of Typescript, and I updated all my packages with ncu, closed/opened VSCode (works sometimes with tsconfig !) and nothing seems to resolve that.

I'm pretty sure it's a VSCode problem, but I'm running out of ideas about how to resolve that.

Any of you guys got ideas ?

Edit:

If you followed the above steps and VSCode still shows the "-jsx" error, make sure you have disabled the 'TypeScript God' extension (and any other TS extension until the issue no longer appears).

This is because VSCode's Typescript version is not using the newest babel features that create-react-app uses by default.

You can change VS Code to use the workspace's version of Typescript instead, which will fix this issue.

Open a TypeScript or JavaScript file and click on the TypeScript version number in the Status Bar. A message box will appear asking you which version of TypeScript VS Code should use

Select "Use Workspace Version" to use the newer Create React App typescript version.