React+Jest Testing state change in useEffect

Question

So I've a similar useCase defined in stackover flow answer, but somewhat different. I have a react component and it has two useEffect hooks. One useEffect hook is used at first time render and other once the dependency in that useEffect hook changes. I tried mocking getDelivery but it comes from a custom hook defined in app.

// App.tsx

const App = () => {
  const [deliveryType, setDeliveryType] = useState([])
  const { DeliveryStatusService } = useServices()
  const deliveryStatusService = new DeliveryStatusService()
  const { deliveryId } = useParams()

  useEffect(() => {
    setup()
  }, [])

  useEffect(() => {
    if (deliveryType) {
      console.log("DeliveryType is Set")
    }
  }, [deliveryType])

  const setup = async () => {
    const response = await deliveryStatusService.getDelivery(deliveryId) // this call comes from custom hook and external service
    setDeliveryType(response)
  }

  return (
    <>
      <div>{!deliveryType ? <div>Render Loading</div> : <div>Data loaded with {deliveryType}</div>}</div>
    </>
  )
}

I tried to mock it out as stated in above article as follows using Jest and Enzyme but if I console.log(wrapper.debug) I still get Render Loading and not Data loaded with {deliveryType}.

I tried mocking it like this :

const getDelivery = jest.fn()
const DeliveryStatusService = jest.fn().mockImplementation(() => ({
  getDelivery,
}))

it('mock getDelivery', () => {
  const wrapper = mount(<ServiceProvider services={{DeliveryStatus}}>
                         <App />
                        </ServiceProvider>
  getDelivery.mockReturnValue(
  Promise.resolve(
    ... dummyData
  ),
)
await act(flushPromises)

wrapper.update()

await act(flushPromises)
console.log(wrapper.debug())

console.log(wrapper.debug()) yields the following output:

<ServiceProvider services={{...}}>
        <App>
          <div>
            <div>
              Render Loading
            </div>
          </div>
        <App>
 </ServiceProvider>

Am I not mocking correctly so that I would never have Data loaded div?