Code Coverage with Typescript test fails

Right-clicking a test inside a *.test.tsx file and choosing "Run ... with Coverage" returns error text. But right-clicking same test and choosing "Run ..test method" passes without errors. 

Edit: Seems running test with default terminal test coverage result in same error.

yarn test --coverage

Example Code.

App.tsx

import React from 'react'

function App() {
  return (
    <div>
      <h1>Hello React</h1>
    </div>
  )
}

export default App

App.test.tsx

import React from 'react'
import {render} from '@testing-library/react'
import App from './App'

test('renders the heading', () => {
  const {getByText} = render(<App/>)
  const linkElement = getByText(/Hello React/i);
  expect(linkElement).toBeInTheDocument()
})

Output with normal Run test

yarn run v1.22.4
$ react-scripts test
PASS src/App.test.tsx
√ renders the heading (28ms)

Test Suites: 1 passed, 1 total
Tests: 1 passed, 1 total
Snapshots: 0 total
Time: 4.667s
Ran all test suites related to changed files.


Output with Code Coverage

console.error node_modules/react-dom/cjs/react-dom.development.js:19527
The above error occurred in the <App> component:
in App (at App.test.tsx:6)

Consider adding an error boundary to your tree to customize error handling behavior.
Visit https://fb.me/react-error-boundaries to learn more about error boundaries.

Error: App(...): Nothing was returned from render. This usually means a return statement is missing. Or, to render nothing, return null.

Any fix for this issue with Run with Coverage?