test init messes up project

Environment
Provide version numbers for the following components (information can be retrieved by running tns info in your project folder or by inspecting the package.json of the project):
✔ Getting NativeScript components versions information...
✔ Component nativescript has 7.0.8 version and is up to date.
✔ Component @nativescript/core has 7.0.3 version and is up to date.
✔ Component @nativescript/ios has 7.0.0 version and is up to date.
✖ Component @nativescript/android is not installed.

Describe the bug
Trying to run unit tests fails with the following error:

Error: Cannot use import statement outside a module
    at Errors.failWithOptions (/usr/local/lib/node_modules/nativescript/lib/common/errors.js:157:27)
    at Errors.fail (/usr/local/lib/node_modules/nativescript/lib/common/errors.js:130:21)
    at DevicesService.<anonymous> (/usr/local/lib/node_modules/nativescript/lib/common/mobile/mobile-core/devices-service.js:425:30)
    at Generator.throw (<anonymous>)
    at rejected (/usr/local/lib/node_modules/nativescript/lib/common/mobile/mobile-core/devices-service.js:12:65)
    at processTicksAndRejections (internal/process/task_queues.js:97:5) {
  name: 'Exception',
  errorCode: 127,
  suggestCommandHelp: false,
  proxyAuthenticationRequired: false,
  printOnStdout: undefined
}

To Reproduce

tns create demo-test --tsc
tns test init #select mocha
tns test ios

Expected behavior
Tests to run.

Sample project

Additional context

Reproduce the failure with tns create demo-test --tsc, tns test init, and tns test ios, then inspect the CLI path reported in lib/common/mobile/mobile-core/devices-service.js. Trace how the Mocha test setup is initialized and determine what must change so the generated TypeScript project runs its iOS tests without the import error.