mui simple carousel library implementing issue

Implementing a simple carousel using react material-ui carousel the Invalid hook call error rises.

Error occurred:

Invalid hook call. Hooks can only be called inside of the body of a function component. This could happen for one of the following reasons:

1. You might have mismatching versions of React and the renderer (such as React DOM)
2. You might be breaking the Rules of Hooks
3. You might have more than one copy of React in the same app See https://reactjs.org/link/invalid-hook-call for tips about how to debug and fix this problem.

I simplified the documentation starter code as much as I could, but the error still remains. Seems the dependency packages version looks correct and error just rise from the code I had no idea how to fix that.

My code: On stackblitz

import * as React from 'react';
import { Paper, Typography, Button } from '@mui/material';
import Carousel from 'react-material-ui-carousel';

const Demo = (props) => (
  <Carousel>
    {/* Change above line to <> and it work, maybe some version conflicts??  */}
    <Paper>
      <Typography>First Item</Typography>
      <Button variant="outlined">Click me please!</Button>
    </Paper>
    <Paper>
      <Typography>Second Item</Typography>
      <Button variant="outlined">Click me please!</Button>
    </Paper>
    <Paper>
      <Typography>Third Item</Typography>
      <Button variant="outlined">Click me please!</Button>
    </Paper>
  </Carousel>
);

export default Demo;