useTransition with imported components isn't smooth - background shows and components appear suddenly

[aaronzshey]

Based off of the basic useTransition example, I wanted to adapt it to use an imported component instead of animated.div. However, it doesn't work - the components don't smoothly slide together, they disappear and reappear choppily.

CodeSandbox link: https://codesandbox.io/p/github/aaronzshey/reactspring-sandbox/main

What am I doing wrong?