Upgrading Jest to v29 – Error Test environment jest-environment-jsdom cannot be found

Jest team added more descriptive error message in version 28.0.1

Error: ...
As of Jest 28 "jsdom" is no longer shipped by default, make sure to install it separately.

Installing jsdom package resolves the issue:

# npm
npm install -D jest-environment-jsdom
# yarn
yarn add -D jest-environment-jsdom