React Native (Android) - Failed to transform hermes-debug.aar

I am working on an old React Native app and want to upgrade RN version from version ^0.64.2 to 0.70.1. After using command npx react-native upgrade, there are changes in number version of dependencies. I also edit build.gradle in andriod\app folder as instructed in this document:

project.ext.react = [
    enableHermes: true  // clean and rebuild if changing
]
...
dependencies {
    ...
    if (enableHermes) {
        def hermesPath = "../../node_modules/hermes-engine/android/";
        debugImplementation files(hermesPath + "hermes-debug.aar")
        releaseImplementation files(hermesPath + "hermes-release.aar")
    } else {
        implementation jscFlavor
    }
    ...
}

After that, I run command ./gradlew clean in android folder and run npx react-native run-android. Then this error shows up:

BUILD FAILED in 9s

error Failed to install the app. Make sure you have the Android development environment set up: https://reactnative.dev/docs/environment-setup.
Error: Command failed: gradlew.bat app:installDebug -PreactNativeDevServerPort=8081

FAILURE: Build failed with an exception.

* What went wrong:
Execution failed for task ':app:checkDebugAarMetadata'.
> Could not resolve all files for configuration ':app:debugRuntimeClasspath'.
   > Failed to transform hermes-debug.aar to match attributes {artifactType=android-aar-metadata}.
      > Execution failed for JetifyTransform: D:\{ProjectFolder}\node_modules\hermes-engine\android\hermes-debug.aar.
         > Transform's input file does not exist: D:\{ProjectFolder}\node_modules\hermes-engine\android\hermes-debug.aar. (See https://issuetracker.google.com/issues/158753935)

After taking a while, I also found out that there is no hermes-engine folder inside node_modules folder but still have no clue what to do.

Here is my package.json:

{
  "name": "MyApp",
  "version": "1.0.0",
  "private": true,
  "scripts": {
    "android": "react-native run-android",
    "ios": "react-native run-ios",
    "start": "react-native start",
    "test": "jest",
    "lint": "eslint ."
  },
  "dependencies": {
    "@notifee/react-native": "^3.0.4",
    "@react-native-async-storage/async-storage": "^1.17.10",
    "@react-native-community/art": "^1.2.0",
    "@react-native-community/datetimepicker": "^3.5.2",
    "@react-native-firebase/app": "^12.9.0",
    "@react-native-firebase/messaging": "^12.9.0",
    "@react-navigation/material-top-tabs": "^6.2.1",
    "@react-navigation/native": "^6.0.1",
    "@react-navigation/stack": "^6.2.1",
    "axios": "^0.24.0",
    "fbjs": "^3.0.4",
    "jest": "^26.6.3",
    "jwt-decode": "^3.1.2",
    "moment": "^2.29.3",
    "moment-timezone": "^0.5.34",
    "prop-types": "^15.8.1",
    "react": "18.1.0",
    "react-native": "0.70.1",
    "react-native-biometrics": "^2.1.4",
    "react-native-camera": "^3.35.0",
    "react-native-chart-kit": "^6.12.0",
    "react-native-elements": "^2.0.4",
    "react-native-file-viewer": "^2.1.1",
    "react-native-fs": "^2.20.0",
    "react-native-gesture-handler": "^1.10.3",
    "react-native-image-crop-picker": "^0.32.2",
    "react-native-modal": "^11.5.6",
    "react-native-pager-view": "^5.4.24",
    "react-native-pdf": "^6.2.0",
    "react-native-picker-select": "^8.0.0",
    "react-native-pie-chart": "^2.0.2",
    "react-native-render-html": "^6.3.4",
    "react-native-safe-area-context": "^3.0.2",
    "react-native-screens": "^3.13.1",
    "react-native-simple-toast": "^1.1.2",
    "react-native-svg": "^12.1.1",
    "react-native-swipe-list-view": "^3.2.9",
    "react-native-tab-view": "^3.1.1",
    "react-native-vector-icons": "^7.0.0",
    "react-navigation": "^4.4.0",
    "react-query": "^3.34.2",
    "react-redux": "^7.2.0",
    "redux": "^4.0.5",
    "redux-devtools-extension": "^2.13.8",
    "redux-thunk": "^2.3.0",
    "toggle-switch-react-native": "^3.3.0"
  },
  "devDependencies": {
    "@react-native-community/eslint-config": "^2.0.0",
    "babel-plugin-root-import": "^6.5.0",
    "eslint": "^7.14.0",
    "react-test-renderer": "^17.0.1"
  },
  "jest": {
    "preset": "react-native"
  }
}

Update: The error still occur after I edited package.json and use npm install to add hermes-engine. Here are the errors:

npm WARN config global `--global`, `--local` are deprecated. Use `--location=global` instead.
npm ERR! code ERESOLVE
npm ERR! ERESOLVE could not resolve
npm ERR!
npm ERR! While resolving: [email protected]
npm ERR! Found: [email protected]
npm ERR! node_modules/react
npm ERR!   react@"18.1.0" from the root project
npm ERR!   peer react@"*" from @jsamr/[email protected]
npm ERR!   node_modules/@jsamr/react-native-li
npm ERR!     @jsamr/react-native-li@"^2.3.0" from [email protected]
npm ERR!     node_modules/react-native-render-html
npm ERR!       react-native-render-html@"^6.3.4" from the root project
npm ERR!   27 more (@react-native-community/art, ...)
npm ERR!
npm ERR! Could not resolve dependency:
npm ERR! peer react@"^16.8.0 || ^17.0.0" from [email protected]
npm ERR! node_modules/react-query
npm ERR!   react-query@"^3.34.2" from the root project
npm ERR!
npm ERR! Conflicting peer dependency: [email protected]
npm ERR! node_modules/react
npm ERR!   peer react@"^16.8.0 || ^17.0.0" from [email protected]
npm ERR!   node_modules/react-query
npm ERR!     react-query@"^3.34.2" from the root project
npm ERR! 
npm ERR! Fix the upstream dependency conflict, or retry
npm ERR! this command with --force, or --legacy-peer-deps
npm ERR! to accept an incorrect (and potentially broken) dependency resolution.

Solution

I'm also upgrading RN version to 0.70.1, from 0.69.x you have some changes to do in app/build.gradle about hermes.

...

if (enableHermes) {
    implementation("com.facebook.react:hermes-engine:+") {
        exclude group: 'com.facebook.fbjni'
    }
} else {
    implementation jscFlavor
}

  def hermesPath = "../../node_modules/hermes-engine/android/";

  debugImplementation files(hermesPath + "hermes-debug.aar")

  releaseImplementation files(hermesPath + "hermesrelease.aar")

...

Source: Bundled Hermes Documentation