Svelte 5: <script module> - Cannot use JSX unless the '--jsx' flag is provided. js(17004)

[Fd929c2CE5fA]

Describe the bug

See the screen recording for errors:

reproduction-s9v5sz.mp4

npm create vite@latest
svelte + javascript

<script module>

	export function abc(a, b) {
		if (a > b) {
			return "abc";
		}
		return "abcdefg";
	}

</script>

<script>
	
</script>

Related Issues/PR:

• breaking: deprecate context="module" in favor of module #12948
• <script context="module"> -> <script module> #12637 (comment)

Reproduction

https://github.com/Fd929c2CE5fA/reproduction-s9v5sz

Logs

No response

System Info

"@sveltejs/vite-plugin-svelte": "3.1.2",
"svelte": "5.0.0-next.247",
"vite": "5.4.6"

Severity

blocking an upgrade

[Fd929c2CE5fA]

The issue was solved after updating the "Svelte for VS Code" extension.