Typescript can't resolve react-router-dom

I'm trying to use React Router in Typescript React app. After running yarn create react-app my-app --template typescript, as told to do in create-react-app docs and installing @types/react-router-dom my package.json looks as following:

{
  "name": "allpic-frontend",
  "version": "0.1.0",
  "private": true,
  "dependencies": {
    "@testing-library/jest-dom": "^5.11.4",
    "@testing-library/react": "^11.1.0",
    "@testing-library/user-event": "^12.1.10",
    "@types/jest": "^26.0.15",
    "@types/node": "^12.0.0",
    "@types/react": "^16.9.53",
    "@types/react-dom": "^16.9.8",
    "@types/react-router-dom": "^5.1.6",
    "react": "^17.0.1",
    "react-dom": "^17.0.1",
    "react-scripts": "4.0.1",
    "typescript": "^4.0.3",
    "web-vitals": "^0.2.4"
  },
  "scripts": {
    "start": "react-scripts start",
    "build": "react-scripts build",
    "test": "react-scripts test",
    "eject": "react-scripts eject"
  },
  "eslintConfig": {
    "extends": [
      "react-app",
      "react-app/jest"
    ]
  },
  "browserslist": {
    "production": [
      ">0.2%",
      "not dead",
      "not op_mini all"
    ],
    "development": [
      "last 1 chrome version",
      "last 1 firefox version",
      "last 1 safari version"
    ]
  }
}

My App.tsx consists of the following content:

import React from 'react';
import './App.css';
import {BrowserRouter as Router, Link, Route, Switch} from "react-router-dom";

function App() {
  return (
    <Router>
      <Link to="/">
        <h1>Home</h1>
      </Link>
      <Link to="/upload">
        <h1>Upload</h1>
      </Link>
      <Switch>
        <Route path="/">
          <h1>hello world</h1>
        </Route>
      </Switch>
    </Router>
  );
}

export default App;

Upon running yarn start I'm getting these errors:

Module not found: Can't resolve 'react-router-dom' in '/home/max/Projects/allpic/allpic-frontend/src'
/home/max/Projects/allpic/allpic-frontend/node_modules/react-scripts/scripts/start.js:19
  throw err;
  ^

[Error: ENOENT: no such file or directory, stat '/home/max/.face.icon'] {
  errno: -2,
  code: 'ENOENT',
  syscall: 'stat',
  path: '/home/max/.face.icon'
}
error Command failed with exit code 1.
info Visit https://yarnpkg.com/en/docs/cli/run for documentation about this command.

As I said, this is fresh project. I haven't done anything apart from what I mentioned above. I tried to debug this issue by placing a breakpoint at start.js:19, but I'm not getting any stack trace from the listener.

How can I overcome this issue and make my Typescript app compile and work with React Router?