My understanding of allowSyntheticDefaultImports is that it assumes you have an extra build step that converts imports of the form import React from "react"; to import * as React from "react"; (so you can write the former in place of the latter).
However, by default Node does not do this natively. This can cause runtime errors when importing packages that haven't reexported everything as a default.
Also see:
I'm not fully confident about this - would be keen for others to weigh in whether this assessment is accurate.