The error message is straight forward: The prop type does not exist for the components View and TouchableOpacity. The available props for View are documented here. The available props for TouchableOpacity are documented here.

Since you are not doing anything with type in WrappingElement other than passing it to View and TouchableOpacity and the onPress function, you can just remove this prop. The following code is equivalent to yours, but does not throw the type error.

export interface IWEProps {
  accessibilityLabel: string;
  onPress?: ((status: string | undefined) => void) | undefined;
  localePrefix: string;
  children: JSX.Element[];
  style: IWEStyle;
  type?: string;
}

class WrappingElement extends  React.PureComponent<IWEProps> {
  render() {
    const {
      onPress, children, type, accessibilityLabel, style,
    } = this.props;

    return onPress ? (
      <TouchableOpacity
        accessibilityLabel={accessibilityLabel}
        style={style}
        onPress={() => onPress(type)}
      >
        { children }
      </TouchableOpacity>
    ) : (
      <View
        accessibilityLabel={accessibilityLabel}
        style={style}
      >
        { children }
      </View>
    );
  }
}