Here is a comprehensive demo that explains my predicament.
Both hover options create different problems. I want to be able to hover over cards and display their overlay, while also having the functionality to click on the card's child container.
I found similar questions such as example 1 or example2. However, these only touch the initial bug of hover state getting hung up with onMouseEnter/Leave, and they don't have answers that also consider the issue with interactive with child components.