The expected type comes from property 'component' which is declared here on type 'Route' code example

Example: reach router path typescript error

import React, { FunctionComponent } from "react";
import { RouteComponentProps } from "@reach/router";

type Props = { component: FunctionComponent } & RouteComponentProps;

const Route: FunctionComponent<Props> = ({ component: Component, ...rest }) => (
  <Component {...rest} />
);

export default Route;