I was facing the same problem and this are the steps I took to resolve
- Ensure your node version is greater than 10
- Run ng update @angular/core@12 @angular/cli@12. You are most likely to receive an error like below
Package "@angular-eslint/builder" has an incompatible peer dependency to "@angular/cli" (requires ">= 11.2.0 < 12.0.0", would install "12.0.0").
× Migration failed: Incompatible peer dependencies found.
Peer dependency warnings when installing dependencies means that those dependencies might not work correctly together.
You can use the '--force' option to ignore incompatible peer dependencies and instead address these warnings later.
  See "C:\Users\KOTIENO1\AppData\Local\Temp\ng-gY5FIE\angular-errors.log" for further details.
The warning advices that we can use --force to ignore the warnings. We will do that for now
3) Run ng update. This will return all commands we need to run
Using package manager: 'npm'
Collecting installed dependencies...
Found 68 dependencies.
    We analyzed your package.json, there are some packages to update:
      Name                                    Version                  Command to update
     -------------------------------------------------------------------------------------
      @angular-eslint/schematics              4.2.0 -> 12.0.0          ng update @angular-eslint/schematics
      @angular/cdk                            11.2.11 -> 12.0.0        ng update @angular/cdk
      @angular/cli                            11.2.11 -> 12.0.0        ng update @angular/cli
      @angular/core                           11.2.12 -> 12.0.0        ng update @angular/core
      @ngrx/store                             11.1.1 -> 12.0.0         ng update @ngrx/store
    There might be additional packages which don't provide 'ng update' capabilities that are outdated.
    You can update the additional packages by running the update command of your package manager.
- Run ng update @angular-eslint/schematics @angular/cdk @angular/cli @angular/core @ngrx/store --force. This is per the step 3, yours may be slightly different. Remember to add--forceflag
This successfully runs with a a number of warnings
npm WARN ERESOLVE overriding peer dependency
npm WARN While resolving: furaha-app@0.0.0
npm WARN Found: @angular/compiler-cli@12.0.0
npm WARN node_modules/@angular/compiler-cli
npm WARN   @angular/compiler-cli@"~12.0.0" from the root project
npm WARN   3 more (@angular-devkit/build-angular, @angular/localize, ng-packagr)
npm WARN
npm WARN Could not resolve dependency:
npm WARN peer @angular/compiler-cli@"^12.0.0-next" from @angular-devkit/build-angular@12.0.0
npm WARN node_modules/@angular-devkit/build-angular
npm WARN   @angular-devkit/build-angular@"~12.0.0" from the root project
npm WARN ERESOLVE overriding peer dependency
npm WARN While resolving: furaha-app@0.0.0
npm WARN Found: typescript@4.2.4
npm WARN node_modules/typescript
npm WARN   typescript@"4.2.4" from the root project
npm WARN   4 more (@angular-devkit/build-angular, ...)
npm WARN
npm WARN Could not resolve dependency:
npm WARN peer typescript@"~4.2.3" from @angular-devkit/build-angular@12.0.0
npm WARN node_modules/@angular-devkit/build-angular
npm WARN   @angular-devkit/build-angular@"~12.0.0" from the root project
npm WARN ERESOLVE overriding peer dependency
npm WARN While resolving: furaha-app@0.0.0
npm WARN Found: @angular/compiler@12.0.0
npm WARN node_modules/@angular/compiler
npm WARN   @angular/compiler@"~12.0.0" from the root project
npm WARN   3 more (@angular/compiler-cli, @angular/localize, ng-packagr)
- By this step your - package.jsonfile has been updated. Run- ng serveto make sure everything is working as expected
 
- Check the warnings. Most will be related to compatibility as most angular related packages expect  verson 10 <= @angular/core <12. This can be handled by case to case basis e.g updating these packages