Watcher failing to run on latest create-react-app (0.8.3)

I just installed the latest create-react-app and I can no longer get the watcher to run. I’m currently getting the following error in vscode:

fs.js:1431
    throw error;
    ^

Error: watch /home/bill/dev/react-client/node_modules/es5-ext/test/string/#/contains ENOSPC
    at exports._errnoException (util.js:1026:11)
    at FSWatcher.start (fs.js:1429:19)
    at Object.fs.watch (fs.js:1456:11)
    at NodeWatcher.watchdir (/home/bill/dev/react-client/node_modules/sane/src/node_watcher.js:144:20)
    at Walker.<anonymous> (/home/bill/dev/react-client/node_modules/sane/src/node_watcher.js:353:12)
    at emitTwo (events.js:106:13)
    at Walker.emit (events.js:191:7)
    at /home/bill/dev/react-client/node_modules/walker/lib/walker.js:69:16
    at go$readdir$cb (/home/bill/dev/react-client/node_modules/graceful-fs/graceful-fs.js:149:14)
    at FSReqWrap.oncomplete (fs.js:123:15)

All the tests are marked with empty green circles and indicate that tests haven’t been run even though they have been.

[kroniak]

I see other errors, jsx transformation does not work. This is last CRA 0.8.3

FAIL  src\App.test.js

  ● Test suite failed to run

    SyntaxError: e:/workspaces/_templates/React/create-react-app/src/App.test.js: Unexpected token (7:18)
      5 | it('renders without crashing', () => {
      6 |   const div = document.createElement('div');
    > 7 |   ReactDOM.render(<App />, div);
        |                   ^
      8 | });
      9 | 
      
      at Parser.pp$5.raise (node_modules\babylon\lib\index.js:4333:13)
      at Parser.pp.unexpected (node_modules\babylon\lib\index.js:1705:8)
      at Parser.pp$3.parseExprAtom (node_modules\babylon\lib\index.js:3670:12)
      at Parser.pp$3.parseExprSubscripts (node_modules\babylon\lib\index.js:3414:19)
      at Parser.pp$3.parseMaybeUnary (node_modules\babylon\lib\index.js:3394:19)
      at Parser.pp$3.parseExprOps (node_modules\babylon\lib\index.js:3324:19)
      at Parser.pp$3.parseMaybeConditional (node_modules\babylon\lib\index.js:3301:19)
      at Parser.pp$3.parseMaybeAssign (node_modules\babylon\lib\index.js:3264:19)
      at Parser.pp$3.parseExprListItem (node_modules\babylon\lib\index.js:4190:16)
      at Parser.pp$3.parseCallExpressionArguments (node_modules\babylon\lib\index.js:3493:20)


Test Suites: 1 failed, 1 total
Tests:       0 total
Snapshots:   0 total
Time:        8.924s
Ran all test suites.

[seanpoulter]

Closing this issue since the extension now displays a message that it relies on Jest 20+, and despite the using create-react-app with react-scripts 0.8.3 and Jest 17.0.2 it still worked OK.