Why does the UI not update when calling a hook method?

I have written a simple component and test file which aims to test the hook and the UI. It uses the useCounter hook example from the docs.

TextComp.tsx

import React, { FC, useCallback, useState } from 'react';

export const TestComp: FC = () => {
  const { count } = useCounter();

  return <p>{`COUNT: ${count}`}</p>;
};

export const useCounter = () => {
  const [count, setCount] = useState(0);
  const increment = useCallback(() => setCount((x) => x + 1), []);
  return { count, increment };
};

TestComp.spec.tsx

import { TestComp, useCounter } from './TestComp';
import { act, render, renderHook, screen } from '@testing-library/react';

it('should render successfully', () => {
  const { asFragment } = render(<TestComp />);

  expect(asFragment()).toMatchSnapshot();
});

it('should have init value of 0', () => {
  render(<TestComp />);

  expect(screen.getByText('COUNT: 0')).toBeInTheDocument();
});

it('should increment via hook', () => {
  const { result } = renderHook(() => useCounter());
  expect(result.current.count).toBe(0);

  act(() => {
    result.current.increment();
  });

  expect(result.current.count).toBe(1);
});

it('should update ui from hook', async () => {
  render(<TestComp />);
  const { result } = renderHook(() => useCounter());

  await act(() => {
    result.current.increment();
  });

  expect(result.current.count).toBe(1);
  await expect(screen.getByText('COUNT: 1')).toBeInTheDocument();
});

The test file has 4 tests.

The component renders properly and matches a snapshot ✅
The UI of the component shows the string "COUNT: 0" (0 is the default value for the useCounter hook) ✅
The hook can be tested and the increment function is working correctly ✅
The UI reflects the hooks value changing - I would expect it to now say "COUNT: 1" after running the increment function ❌

All of these tests pass except 4. Where I expect to see "COUNT: 1" I actually see "COUNT: 0". Why is this?

Error message dump:

Is this due to a race condition / async operation? Am I using the library completely wrong? I want to be able to test that the hook functionality properly updates the UI, but I am seeing what looks like an out of date Ui version. Thanks for the help.

testing-library / react-hooks-testing-library

Why does the UI not update when calling a hook method? #933