React-scripts@4 Failed to compile because of prettier

Updated react-scripts from 3 to 4.0.1 with all underlying packages (react@17, typescript@4.1 and eslint@7.14), now it shows Failed to compile. in the console with tons of prettier problems like they are errors. Used to run fine before, showing only Eslint warnings. Also if I hit save on any clean file under watch it recompiles fine (but again, used to show Eslint warning, which I would like to see there). Went through their docs and didn't find a way to configure this behavior, can it be?