VSCode jest runner fails to debug Typescript code

I am using VSCode jest runner. https://github.com/firsttris/vscode-jest-runner/ . Here's what the output looks like when I hit debug on a testcase:

FAIL services/servicenameA/handler.test.js ● Test suite failed to run

SyntaxError: C:\Users\SIKAU\FILEPATH\filename.ts: Unexpected token, expected "," (9:58)

   7 |
   8 | //const dynamoDb = new AWS.DynamoDB.DocumentClient();
>  9 | export async function getAccountIdImplementation(accountId: string) {
     |                                                                                                       ^


  at Parser._raise (node_modules/@babel/parser/src/parser/error.js:97:45)
  at Parser.raiseWithData (node_modules/@babel/parser/src/parser/error.js:92:17)
  at Parser.raise (node_modules/@babel/parser/src/parser/error.js:41:17)
  at Parser.unexpected (node_modules/@babel/parser/src/parser/util.js:140:16)
  at Parser.expect (node_modules/@babel/parser/src/parser/util.js:117:28)
  at Parser.parseBindingList (node_modules/@babel/parser/src/parser/lval.js:315:14)
  at Parser.parseFunctionParams (node_modules/@babel/parser/src/parser/statement.js:1121:24)
  at Parser.parseFunction (node_modules/@babel/parser/src/parser/statement.js:1087:10)
  at Parser.parseFunctionStatement (node_modules/@babel/parser/src/parser/statement.js:553:17)
  at Parser.parseStatementContent (node_modules/@babel/parser/src/parser/statement.js:283:23)

Test Suites: 1 failed, 1 total Tests: 0 total Snapshots: 0 total Time: 7.788 s

My jest.config.js looks like follows:

// jest.config.js

module.exports = {
    collectCoverageFrom: ['./services/**/*.{js, ts,tsx}'],
    coverageThreshold: {
      './services/**/*.js': {
        branches: 100,
        functions: 100,
        lines: 100,
        statements: 100,
      },
      './services/**/*.ts': {
        branches: 100,
        functions: 100,
        lines: 100,
        statements: 100,
      },
    },
    moduleDirectories: [
        'node_modules',
    ],

  }

tsconfig.json looks like:

{
  "compilerOptions": {
    "allowSyntheticDefaultImports": true,
    "baseUrl": ".",
    "moduleResolution": "node",
    "sourceMap": true,
    "target": "ES6"
  },
  "exclude": ["node_modules", "**/*.spec.ts"],
  "composite": true,
  "declarationMap": true,
  "strict": true,
  "noUnusedLocals": true,
  "noImplicitThis": true,
  "strictNullChecks": true,
  "noImplicitReturns": true,
  "preserveConstEnums": true,
  "suppressImplicitAnyIndexErrors": true,
  "forceConsistentCasingInFileNames": true,
  "resolveJsonModule": true,
  "esModuleInterop": true
}

babel.config.js

module.exports = {presets: ['@babel/preset-env']}

The Debugger fails while testing Typescript code.

How do I get this going? Have tried googling and whatnot. Nothing has fixed the issue and the debugger just won't run.