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Headless UI Transition Not Working to show Overlay Component in React

I have a button and when clicked, it opens an overlay that takes up the entire screen except it still shows the nav bar. I am trying to have a fade in/fade out effect when the overlay shows up but it’s not working. (Ideally, it should also come up from the bottom but I need just any transition to work now). I was looking through the docs and I need to make sure my components forward refs but I’m not sure what I’m doing wrong. This is the code snipped with the button which opens the overlay: