react-select: 5.8.0 - Selected option only appears in input after focus is lost

I am currently developing a react (18) NextJS (14.2.5) application using Google Maps AutocompleteService. What I am experiencing is the selected value is not populating the input value unless the focus is lost on the element. I have verified that state is being updated.

const customStyles = {
  dropdownIndicator: (provided) => ({
    ...provided,
    display: 'none',
  }),
  indicatorSeparator: (provided) => ({
    ...provided,
    display: 'none',
  }),
  container: (provided) => ({
    ...provided,
    width: '100%',
    maxWidth: '600px',
    margin: '0 auto',
  }),
  input: (provided) => ({
    ...provided,
    width: '100%',
  }),
  singleValue: (provided) => ({
    ...provided,
    color: 'black', // Set the text color for selected value
  }),
  option: (provided) => ({
    ...provided,
    color: 'black', // Set the text color for options
  }),
  menu: (provided) => ({
    ...provided,
    width: '100%', // Ensure the menu width is responsive
  }),
  control: (provided, state) => ({
    ...provided,
    borderColor: state.isFocused ? 'blue' : 'gray', // Change border color on focus
    boxShadow: state.isFocused ? '0 0 0 1px blue' : 'none', // Add shadow on focus
  }),
};

      <Select
        inputValue={query}
        onInputChange={(newValue) => setQuery(newValue)}
        onChange={(selected) => {
          setQuery(selected ? selected.label : '');
          setSelectedOption(selected);
        }}
        options={options}
        placeholder="Search places..."
        className=""
        classNamePrefix="select"
        styles={customStyles}
        value={selectedOption}
        isClearable
      />

No repository file or test is identified in the report. Start by reproducing the controlled Select example with React 18 and NextJS 14.2.5, focusing on the interaction between inputValue, onInputChange, onChange, and value. Done means the selected option's label appears in the input immediately after selection without requiring focus to be lost.