react reconciliation algorithm does not apply between page transitions

[abdelrahmantoptal]

When next/link does client-side navigation, everything that falls under/inside the Page component subtree gets re-rendered.
For example, consider these two pages:

<Wrapper>
  <Sidebar />
  <div>page1</div>
</Wrapper>

and

<Wrapper>
  <Sidebar />
  <p>page2</p>
</Wrapper>

According to React docs, because that div changes to p, the whole subtree below div or p is discarded. It will never be compared with the diff algorithm. But this means that Wrapper and Sidebar will not be re-rendered.

For example when user is on Page1, and made an action that results in a state change in the sidebar component instance, it should retain that state when they move to Page2 on client-side navigation with next/link, given that Sidebar props never change.

However this is not what happens. Everything is re-rendered when clicking the next/link (except these elements in _app.tsx, above the Page component)
Is that intentional, and the right thing to have?