Error running tests for Express app when library imports from 3rd party

Current Behavior

I have configured a very simple monorepo with an express app and 2 JS libraries (using the 3 commands below).

The first library has a function that takes a string and converts it to lowercase using javascript's toLowerCase() function.

The second library also converts to lowercase but the library function imports the lowerCase function from lodash.

A basic test is setup in the express app for both library functions, without-import.test.ts (native JS function) and with-import.test.ts (lodash).

The without-import.test.ts runs without any problems, but the with-import.test.ts fails with the error `SyntaxError: Unexpected token 'export'

Commands to re-create the repo npx create-nx-workspace --preset=express npx nx g @nx/js:lib libs/lowercase npx nx g @nx/js:lib libs/lowercase-import

Expected Behavior

I would expect that I could run tests that call a library that with it's own imports.

When running nx run sample-api:test, all tests should pass

GitHub Repo

https://github.com/richmondp/nx-express-app-test-failures

Steps to Reproduce

Run nx run sample-api:test. 1 test will pass, 1 test will fail.

Nx Report

Node   : 18.18.0
   OS     : darwin-arm64
   npm    : 9.8.1

   nx (global)        : 18.0.2
   nx                 : 18.0.2
   @nx/js             : 18.0.2
   @nx/jest           : 18.0.2
   @nx/linter         : 18.0.2
   @nx/eslint         : 18.0.2
   @nx/workspace      : 18.0.2
   @nx/devkit         : 18.0.2
   @nx/eslint-plugin  : 18.0.2
   @nx/express        : 18.0.2
   @nx/node           : 18.0.2
   @nrwl/tao          : 18.0.2
   @nx/vite           : 18.0.2
   @nx/web            : 18.0.2
   @nx/webpack        : 18.0.2
   typescript         : 5.3.3

Failure Logs

No response

Package Manager Version

No response

Operating System

[X] macOS
[ ] Linux
[ ] Windows
[ ] Other (Please specify)

Additional Information

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nrwl / nx