All test failing after update from laravel 7 to laravel 8

After update from laravel 7 to version 8 all test failing with same error:

Illuminate\Database\QueryException: SQLSTATE[HY000]: General error: 1 no such index: IDX_426EF39216FE72E1 (SQL: DROP INDEX IDX_426EF39216FE72E1)

I am also using legacy-factories package for old factories approach