Your Props type for Child is incorrect. React types the setIsActive as Dispatch, which is defined as:
type Dispatch<A> = (value: A) => void;
You’re missing the value argument from your type. This should be correct:
type Props = {
isActive: boolean;
setIsActive: (active: boolean) => void;
}
const Child = ({ isActive, setIsActive}: Props) {
// rest of the component
}