How do I use Jest properly?

I’m migrating from Jetbrains Webstorm working in Node and TypeScript in an Nx monorepo. There, I could go to any test and run/debug them on the fly. In Cursor, I have installed the Jest extension, which doesn’t produce any test output and complains about TypeScript not being configured correctly.
I found out that I had to manually add the node_modules folder to PATH in the integrated terminal, which solved some issues and allowed me to run tests from the terminal using the nx targets. I have also installed the Jest Runner extension, which actually does run and debug the tests correctly, but this does not show up in the editor (tests still show as failed because thats what the Jest extension reported, but the Jest Runner extension successfully ran them all, same with coverage reports).
How do I make the Jest runner work properly?