Cannot focus out of popover within modal

[nicolas-besnard]

What package within Headless UI are you using?

@headlessui/react

What version of that package are you using?

1.7.17

Reproduction URL

https://codesandbox.io/p/sandbox/headless-ui-x-daterangepicker-c7zgr8

Screenshot-202402-20.at.17.20.22.mp4

Describe your issue

When using MUI daterange picker on a button within a HeadlessUI modal, once opened, I cannot close the daterange picker.

Weirdly, it's working if the daterange is bound to and input.

If I replace the Dialog.Panel with a div in my Modal, the component is working again. By looking at the code of Dialog.Panel, it seems that events are not bubbled through the react tree