Nothing happening when clicking HeadlessUI Component - Rendering button but not changing upon click

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I am testing out an example HeadlessUI Switch component, see code

I am using this inside of a server component (rendering is dependent upon login). As you can see the switch is rendering inside the parent component, however when clicking on it nothing happens. This is for all headlessUI and radixUI primitives.

I am using NextJS 14.1.0, React 18, HeadlessUI 0.0.0

Why might this be happening?

I have tried multiple different example components and absolutely nothing is happening when clicking.

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