JSX config not working properly, Getting children props error in all of my components

[predystopic-dev]

Version: Deno 2.1.9 (stable, release, x86_64-unknown-linux-gnu)
v8 13.0.245.12-rusty
typescript 5.6.2

1. Issue
   All the react components (from both external libraries and custom made) in my app are giving error Property 'children' is missing in type ....deno-ts(2741)

2. Steps to reproduce

• Initialize a fresh react project with deno and create-vite-project by running this command deno run -A npm:create-vite@latest --template react-ts
• I installed following deps

"dependencies": {
    "@emotion/react": "^11.14.0",
    "@emotion/styled": "^11.14.0",
    "@mui/icons-material": "^6.4.8",
    "@mui/material": "^6.4.8",
    "@mui/system": "^6.4.8",
    "@mui/x-date-pickers": "^7.28.0",
    "eslint-plugin-react": "^7.37.4",
    "path": "^0.12.7",
    "react": "^19.0.0",
    "react-dom": "^19.0.0",
    "react-router-dom": "^7.4.0"
  },

• Modified my deno.json to use following settings for jsx

{
  "nodeModulesDir": "auto",
  "compilerOptions": {
    "lib": [
      "esnext",
      "ES2020",
      "DOM",
      "DOM.Iterable"
    ],
    "jsx": "react-jsx",
    "jsxImportSource": "react"
  },
  "unstable": [
    "sloppy-imports"
  ]
}

• Create a React component with Material UI components with children components in them

 <Fade in={true} timeout={1000}>
    <Card sx={{ width: '100%', p: 3 }}>
    ....
    </Card>
</Fade>

3. Expected Result
   Shouldn't get any error here as the child component for Fade is present

4. Actual Result
   I get following error
   Property 'children' is missing in type '{ in: true; timeout: number; }' but required in type 'FadeProps'.deno-ts(2741)

[nayeemrmn]

Based on #25359 (comment), this would likely work with deno upgrade --canary if you added "moduleResolution": "bundler" to your compiler options. Marking for now as closed by #30603.