Subject of the issue

Error: Cannot find module 'vue' from 'vue-test-utils.js'

      at Resolver.resolveModule (node_modules/jest-resolve/build/index.js:259:17)
      at Object.<anonymous> (node_modules/@vue/test-utils/dist/vue-test-utils.js:5:11)

Im trying to run jest test but it fails every time

.babelrc file

{
  "presets": [
    ["@babel/preset-env", {
      "modules": false,
      "targets": {
        "node": "10",
        "browsers": ["> 1%", "last 2 versions", "not ie <= 8"]
      }
    }],
    "jest"
  ],
  "plugins": ["@babel/plugin-transform-runtime"],
  "env": {
    "test": {
      "presets": ["@babel/preset-env"]
    }
  }
}

jest.config.js file

module.exports = {
  preset: '@vue/cli-plugin-unit-jest',
  "moduleFileExtensions": [
      "js",
      "json",
      // tell Jest to handle `*.vue` files
      "vue"
    ],
  "transform": {
      // process `*.vue` files with `vue-jest`
      ".*\\.(vue)$": "vue-jest",
      ".*\\.(js)$": "babel-jest"
  },
  "collectCoverage": true,
  "collectCoverageFrom": ["**/*.{js,vue}", "!**/node_modules/**"],
  "transformIgnorePatterns": ["<rootDir>/node_modules/"],
  'verbose': true,
}

versions

"vue": "^2.5.16",
"@vue/cli-plugin-unit-jest": "^4.5.8",
"@vue/test-utils": "^1.1.0",
"@babel/core": "^7.12.3",
"@babel/plugin-transform-runtime": "^7.12.1",
"@babel/preset-env": "^7.12.1",
"@vue/babel-preset-app": "^4.5.8",

Expected behaviour

should run $ jest

Actual behaviour

It breaks and cannot find vue module in vue-test-utils