Jest Test Support for the experimental syntax 'jsx' isn't currently enabled - babeljs

Question

I am writing first tests for my app and just install Jest.
My test is pretty simple, so I don't think the error I am getting is coming from there.
import React from 'react';
import renderer from 'react-test-renderer';
import FancyInput from './FancyInput';
describe('FancyInput', () => {
it('should render correctly', () => {
expect(
renderer.create(
<FancyInput />
)
).toMatchSnapshot();
});
});
Error when run the test is Support for the experimental syntax 'jsx' isn't currently enabled
also
`Add #babel/preset-react (https://git.io/JfeDR) to the 'presets' section of your Babel config to enable transformation.
If you want to leave it as-is, add #babel/plugin-syntax-jsx (https://git.io/vb4yA) to the 'plugins' section to enable parsing.`
My webpack file has the following thing:
rules: [
{
test: /\.js$/,
exclude: /node_modules/,
use: {
loader: 'babel-loader',
options: {
presets: [
'#babel/preset-react',
],
plugins: [
["#babel/plugin-proposal-decorators", { "legacy": true }],
["#babel/plugin-proposal-optional-chaining"],
["#babel/plugin-syntax-jsx"],
]
}
}
},
also my package.json has all the plugins I believe are necessary
"#babel/plugin-proposal-class-properties": "^7.10.4",
"#babel/plugin-proposal-decorators": "^7.4.4",
"#babel/plugin-proposal-optional-chaining": "^7.11.0",
"#babel/plugin-syntax-jsx": "^7.10.4",
"#babel/preset-react": "^7.0.0",
what am I missing here ?