Next.js TypeScript Error: You do not have the required packages installed [duplicate]

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I had the same problem. Solved by updating Next.js and React.

Updating next.js

npm install next@latest

Updating react version in the next.js app:

npm upgrade react@latest react-dom@latest

Source:
https://www.codegrepper.com/code-examples/shell/how+to+update+next+js+version

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