Typescript error "Expected 1 type arguments" showing on one machine but not the other

I get the following typescript error on one of my laptops but not the other. Both are using the latest version of vscode and typescript. I've deleted my local repo on both machines and made a fresh clone but the error persists on one machine.

This is the error:

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enter image description here

According to this example on the styled-component docs, my code is correct. styled<> should take 2 arguments:

import styled from "app/styled-components"

// theme is now fully typed
const Title = styled<{ isActive: boolean }, "h1">("h1")`
  color: ${props => props.isActive ? props.theme.primaryColor : props.theme.secondaryColor}
`

I don't know why this Typescript error is showing up on only one machine. Any advice on how to troubleshoot this error further would be appreciated. Thanks.

package.json

{
  "name": "fb-app",
  "version": "0.1.0",
  "private": true,
  "dependencies": {
    "@material-ui/core": "^3.3.2",
    "@material-ui/icons": "^3.0.1",
    "classnames": "^2.2.6",
    "firebase": "^5.5.7",
    "history": "^4.7.2",
    "lodash": "^4.17.11",
    "lorem-ipsum": "^1.0.6",
    "material-ui-flat-pagination": "^3.0.3",
    "mathjs": "^5.2.3",
    "moment": "^2.22.2",
    "npm": "^6.4.1",
    "react": "^16.6.0",
    "react-dom": "^16.6.0",
    "react-easy-state": "^6.0.5",
    "react-responsive": "^6.0.0",
    "react-router": "^4.3.1",
    "react-router-dom": "^4.3.1",
    "react-router-hash-link": "^1.2.0",
    "react-scripts-ts": "3.1.0",
    "react-string-replace": "^0.4.1",
    "react-window-size": "^1.2.2",
    "shortid": "^2.2.13",
    "styled-components": "^4.0.3"
  },
  "scripts": {
    "start": "react-scripts-ts start",
    "build": "react-scripts-ts build",
    "test": "react-scripts-ts test --env=jsdom",
    "eject": "react-scripts-ts eject",
    "precommit": "lint-staged",
    "lint": "tslint --project tsconfig.json",
    "format": "prettier --write 'src/**/*.{js,ts,tsx,json,css,md}'"
  },
  "devDependencies": {
    "@types/classnames": "^2.2.6",
    "@types/jest": "^23.3.9",
    "@types/lodash": "^4.14.117",
    "@types/mathjs": "^4.4.2",
    "@types/node": "^10.12.2",
    "@types/react": "^16.4.18",
    "@types/react-dom": "^16.0.9",
    "@types/react-redux": "^6.0.9",
    "@types/react-responsive": "^3.0.2",
    "@types/react-router-dom": "^4.3.1",
    "@types/shortid": "0.0.29",
    "@types/styled-components": "^4.0.3",
    "husky": "^1.1.3",
    "lint-staged": "^8.0.4",
    "prettier": "1.15.3",
    "tslint": "^5.11.0",
    "tslint-config-prettier": "^1.15.0",
    "typescript": "^3.1.6"
  },
  "lint-staged": {
    "*.{js,ts,tsx,json,css,md}": [
      "prettier --write",
      "git add"
    ]
  }
}