In the terminal (commands may vary depending on your terminal):
[my-folder] ng new my-test
...
...
...
[my-folder] ls
[my-folder] . .. my-test
[my-folder] cd my-test
[my-test] ng serve
If at this point you get that error, then find your current Angular CLI version and update it:
[my-test] ng -v
[my-test]
_ _ ____ _ ___
/ \ _ __ __ _ _ _| | __ _ _ __ / ___| | |_ _|
/ △ \ | '_ \ / _` | | | | |/ _` | '__| | | | | | |
/ ___ \| | | | (_| | |_| | | (_| | | | |___| |___ | |
/_/ \_\_| |_|\__, |\__,_|_|\__,_|_| \____|_____|___|
|___/
Angular CLI: 1.7.4
Node: 8.9.3
OS: darwin x64
Angular: 5.2.11
... animations, common, compiler, compiler-cli, core, forms
... http, language-service, platform-browser
... platform-browser-dynamic, router
@angular/cli: 1.7.4
@angular-devkit/build-optimizer: 0.3.2
@angular-devkit/core: 0.3.2
@angular-devkit/schematics: 0.3.2
@ngtools/json-schema: 1.2.0
@ngtools/webpack: 1.10.2
@schematics/angular: 0.3.2
@schematics/package-update: 0.3.2
typescript: 2.5.3
webpack: 3.11.0
[my-test] ng update @angular/cli --migrate-only --from=<1.7.4>
With that, you'll update your Angular CLI. Pay attention to your own version. As you can see, in my case it was 1.7.4, but your's will probably be different.
Based on https://github.com/angular/angular-cli/issues/12215#issuecomment-433593036
ng servein the project directory