Return data from SWR mutate after login

I have nextJS application with Laravel backend, and I am trying to use Laravel-NextJS

All login and backend functions work fine.

Here is some login

export const useAuthLaravel = ({ middleware } = {}) => {
    
    const router = useRouter()
    
    const { data: user, error, mutate } = useSWR('/api/user', () =>
        axios
            .get('/api/user')
            .then(res => res.data)
            .catch(error => {
                if (error.response.status != 409) throw error

                router.push('/verify-email')
            }),

    )
    
    const csrf = () => axios.get('/sanctum/csrf-cookie')

    const login_laravel = async ({ setErrors, setStatus, ...props  }) => {

        await csrf()

        setErrors([])
        setStatus(null)

        axios
            .post('/login', props)
            .then(() => mutate())
            .catch(error => {
                if (error.response.status != 422) throw error
                setErrors(Object.values(error.response.data.errors).flat())
            })
    }

    useEffect(() => {
            if (middleware == 'guest' && user) return user
            if (middleware == 'auth' && error && !user) logout_laravel()
        }, [user, error])

        return {
            user,
            csrf,
            login_laravel,
        }
    }

Now above returned values of user I am trying to put in AuthContext,

import { createContext, useEffect, useReducer, useState } from 'react';
import { authApi } from 'src/mocks/auth';


const initialState = {
  isAuthenticated: false,
  isInitialized: false,
  user: null
};

export const AuthProvider = (props) => {

  const { login_laravel, logout_laravel, user } = useAuthLaravel()

  const [state, dispatch] = useReducer(reducer, initialAuthState);

  useEffect(() => {   
        
    const initialize = async () => {

      try {
        if (user) {
          console.log('user exist')
          dispatch({
            type: 'INITIALIZE',
            payload: {
              isAuthenticated: true,
              user
            }
          });
        } else {
          console.log('user not exist')
          dispatch({
            type: 'INITIALIZE',
            payload: {
              isAuthenticated: false,
              user: null
            }
          });
        }
      } catch (err) {
        console.error(err);
        dispatch({
          type: 'INITIALIZE',
          payload: {
            isAuthenticated: false,
            user: null
          }
        });
      }
    };

    initialize();

  }, []);

  const login = async (email, password) => {

    try {
      const user = await login_laravel({ email, password, setErrors, setStatus });

      dispatch({
        type: 'LOGIN',
        isAuthenticated: true,
        payload: {
          user
        }
      });
   
    } catch (err) {
      dispatch({
        type: 'LOGIN',
        payload: {
          isAuthenticated: false,
          user: null
        }
      });
    }
  };

  return (
    <AuthContext.Provider
      value={{
        ...state,
        method: 'LARAVEL',
        login,
      }}
    >
      {children}
    </AuthContext.Provider>
  );
};

Now, when login function is run, it runs SWR validations, but when login finished, it does not return muted user back to AuthProvider function,

Does useAuthLaravel will run again after mutate and login function?

Thank you,

Not sure what sequence is getting wrong, any hints?