This is the way that I found to do it, I'm not saying this is right or wrong. In my case, a block of code was dependent on state being set to a particular value. I will keep my opinions about testing in React to myself.
In your test file:
Adjust your import for the react library
import * as React from 'react'
Then in your test spy on useState and mock its implementation
const stateSetter = jest.fn()
jest
.spyOn(React, 'useState')
//Simulate that mode state value was set to 'new mode value'
.mockImplementation(stateValue => [stateValue='new mode value', stateSetter])
Please be aware that mocking useState this will way apply to all instances where useState is called for your test, so if you have more than one state value that you are looking at, they will all be set to 'new mode value'. Someone else may be able to help you sort that out. Hope it helps.