This worked out in my case. Beforew creating the app first run this:
npm config set legacy-peer-deps true
Then run:
npx create-react-app my-app
Explanation:
The --legacy-peer-deps flag was introduced with v7 as a way to bypass
peerDependency auto-installation; it tells NPM to ignore peer dependencies
and proceed with the installation anyway. This is how things used to be with
NPM v4 through v6.