Okay I figured it out, I accidentally invoked the Prisma 1 CLI which is available as the prisma package on npm.

The way to fix this is to make sure that the Prisma 2 CLI which is available as the @prisma/cli package on npm is installed locally (see docs):

npm install @prisma/cli --save-dev
# or
yarn add @prisma/cli --dev

That way npx will execute the right binary from the local node_modules folder.

From the npx docs:

Executes <command> either from a local node_modules/.bin, or from a central cache, installing any packages needed in order for <command> to run.

By default, npx will check whether <command> exists in $PATH, or in the local project binaries, and execute that. If <command> is not found, it will be installed prior to execution.

Unless a --package option is specified, npx will try to guess the name of the binary to invoke depending on the specifier provided. All package specifiers understood by npm may be used with npx, including git specifiers, remote tarballs, local directories, or scoped packages.

If for some reason the local binary is not picked up, you can try to add the prisma script to your package.json:

{
  "scripts":  {
    "prisma": "prisma"
  }
}