I had a similar concern that was fixed with this issue from react router
I would suggest you change the mock as is:
// pay attention to write it at the top level of your file
const mockedUsedNavigate = jest.fn();
jest.mock('react-router-dom', () => ({
...jest.requireActual('react-router-dom') as any,
useNavigate: () => mockedUsedNavigate,
}));
// your describe/it/test blocks go down there