I am using React and Material UI v5. I have a menu component inside my layout that has children. When clicking on the menu it causes the children to refresh. I have tried solving it by wrapping the children components in React.memo(child) but the result is still the same. What am I doing wrong?

menu component

const MyMenu = ({ menuAnchorEl, setMenuAnchorEl }) => {
    const menuOpen = Boolean(menuAnchorEl);

    const handleMenuClose = () => {
        setMenuAnchorEl(null);
    };

    const menuOptions = [
        {
            link: '/overview',
            Icon: Dashboard,
            label: 'Overview',
        },
    ];

    const MenuOption = ({
        link,
        Icon,
        label,
    }: {
        link: string;
        Icon: OverridableComponent<SvgIconTypeMap<unknown, 'svg'>> & {
            muiName: string;
        };
        label: string;
    }) => {
        return (
            <NavLink href={link}>
                <MenuItem>
                    <ListItemIcon>
                        <Icon color="secondary" fontSize="small" />
                    </ListItemIcon>
                    <ListItemText sx={{ color: 'text.primary' }}>
                        {label}
                    </ListItemText>
                    <Typography variant="body2"></Typography>
                </MenuItem>
            </NavLink>
        );
    };

    return (
        <Menu
            anchorEl={menuAnchorEl}
            open={menuOpen}
            onClose={handleMenuClose}
            variant="selectedMenu"
        >
            <MenuList>
                {menuOptions.map((n) => (
                    <MenuOption key={n.link} {...n} />
                ))}
            </MenuList>
        </Menu>
    );
};

layout component

const MyLayout = observer(({ children }: IProps) => {
    const classes = useStyles();
    const [menuAnchorEl, setMenuAnchorEl] = React.useState<null | HTMLElement>(
        null,
    );

    return (
        <>
            <Hidden mdDown implementation="css">
                <InstallerMenu
                    menuAnchorEl={menuAnchorEl}
                    setMenuAnchorEl={setMenuAnchorEl}
                />
                <div className={classes.appFrame}>
                    <div className={classes.container}>{children}</div>
                </div>
            </Hidden>
        </>
    );
});