• @testing-library/react version: not relevant
• Testing Framework and version: not relevant
• DOM Environment: not relevant

Relevant code or config:

See reproduction

What happened:

Property 'setup' does not exist on type 'typeof import("file:///node_modules/@testing-library/user-event/dist/types/index")'.

Reproduction:

https://www.typescriptlang.org/play?target=99&moduleResolution=99&module=100&jsx=0#code/JYWwDg9gTgLgBAVwM4FMoFEBuKB28BmUEIcA5AAIwpIzA4DmAtADbABGUAhlAJ4D0yNIxTY8pANwAoSYIyiYAOlQwEYABQBKcUA

Problem description:

Incorrect types are causing errors when using TypeScript with moduleResolution set to node16 or nodenext.

This is confirmed by Are The Types Wrong, which shows that "Import resolved to a CommonJS type declaration file, but an ESM JavaScript file.": https://arethetypeswrong.github.io/?p=%40testing-library%2Fuser-event%4014.4.3

Suggested solution:

Rather than shipping one set of types, separately from the codebase, ship types alongside of cjs and esm code.

Not sure if this will help, but @testing-library/react does not have this problem:
https://arethetypeswrong.github.io/?p=%40testing-library%2Freact%4014.0.0
And I can confirm that IRL.