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For sure. I'm just seeing folks saying "setting state in any way in a useEffect is bad", and I'm curious as to 1) why, and/or 2) where that information is coming from.

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I think that is more paranoia from seeing bad code inside useEffect that tanks performance like 2 useEffects updating states that are in each other's dependency array or using useEffect to set a new state that should be a simple derived variable with maybe a useMemo.