TypeScript not reconizing UI-Kitten components

Error message on IDE:

TS2786: 'ApplicationProvider' cannot be used as a JSX component. Itsinstance type 'ApplicationProvider' is not a valid JSX element.

Not just ApplicationProvider, but every component that I imported from UI-kitten/components has the "not a valid JSX element" error.

/** * Sample React Native App * https://github.com/facebook/react-native * * Generated with the UI Kitten TypeScript template * https://github.com/akveo/react-native-ui-kitten * * Documentation: https://akveo.github.io/react-native-ui-kitten/docs * * @format */import React from 'react';import {  ImageProps,  StyleSheet,} from 'react-native';import {  ApplicationProvider,  Button,  Icon,  IconRegistry,  Layout,  Text,} from '@ui-kitten/components';import { EvaIconsPack } from '@ui-kitten/eva-icons';import * as eva from '@eva-design/eva';/** * Use any valid `name` property from eva icons (e.g `github`, or `heart-outline`) * https://akveo.github.io/eva-icons */const HeartIcon = (props?: Partial<ImageProps>): React.ReactElement<ImageProps> => (<Icon {...props} name='heart'/>);export default (): React.ReactFragment => (<><IconRegistry icons={EvaIconsPack}/><ApplicationProvider {...eva} theme={eva.light}><Layout style={styles.container}><Text style={styles.text} category='h1'>          Welcome to UI Kitten 😻</Text><Text style={styles.text} category='s1'>          Start with editing App.js to configure your App</Text><Text style={styles.text} appearance='hint'>          For example, try changing theme to Dark by using eva.dark</Text><Button style={styles.likeButton} accessoryLeft={HeartIcon}>          LIKE</Button></Layout></ApplicationProvider></>);const styles = StyleSheet.create({  container: {    flex: 1,    justifyContent: 'center',    alignItems: 'center',  },  text: {    textAlign: 'center',  },  likeButton: {    marginVertical: 16,  },});

Reproduce:

npx react-native init MyApp --template @ui-kitten/template-ts

It seems like when updating the @types/react to the latest version (18.0.6) will solve the problem. But then EXPO is not supporting version 18. It also seems like a problem only raised recently.