Can't use "className" on a Dialog as div. Type mismatching: Type 'string' is not assignable to type 'never'

[phstc]

I can't manage to set className for a Dialog. When I mouse over className, I get "Type 'string' is not assignable to type 'never'".

I have a similar setup on a different project, and it works. I'm not sure where's the version mismatch. Any ideas on what it could be?

Build error:

Deps:

    "@headlessui/react": "^1.7.15",
    "@heroicons/react": "^2.0.18",
    "react": "18.2.0",
    "react-dom": "18.2.0",
    "@types/react": "18.2.14",
    "@types/react-dom": "18.2.6",

[phstc]

Changing from:

    "@types/node": "20.4.1",
    "@types/react": "18.2.14",
    "@types/react-dom": "18.2.6",

to

    "@types/node": "20.4.1",
    "@types/react": "18.2.15",
    "@types/react-dom": "18.2.7"

fixed the problem.