Menu not interactive in Dot.Net Core 8.0

Menu is not responsive when using Radzen layout in Dot.Net Core 8.0
full page code:

@inherits LayoutComponentBase
@using System.Globalization
@using Radzen
@using Radzen.Blazor
@inject Radzen.DialogService DialogService


<RadzenLayout Style="grid-template-areas: 'rz-sidebar rz-header' 'rz-sidebar rz-body'">
    <RadzenHeader>
        <RadzenStack Orientation="Radzen.Orientation.Horizontal" AlignItems="AlignItems.Center" Gap="0">
            <RadzenSidebarToggle Click="@(() => sidebarExpanded = !sidebarExpanded)" />
            <RadzenLabel Text="Header" />
        </RadzenStack>
    </RadzenHeader>
    <RadzenSidebar @bind-Expanded="@sidebarExpanded">
        <RadzenPanelMenu>
            <RadzenPanelMenuItem Text="Home" Icon="home" />
            <RadzenPanelMenuItem Text="Users" Icon="account_box" />
        </RadzenPanelMenu>
        <div class="rz-p-4">
            Sidebar
        </div>
    </RadzenSidebar>
    <RadzenBody>
        <div class="rz-p-4">
            @Body
        </div>
    </RadzenBody>
</RadzenLayout>

 <RadzenComponents @rendermode="InteractiveAuto" />
    <RadzenDialog />
    <RadzenNotification />

@code {
    bool sidebarExpanded = true;
   
}


Interactivity requires interactive render mode to be enabled for the component or the page that contains it.

if I include @rendermode InteractiveServer in layout page, get the below error.
runtime error
InvalidOperationException: Cannot pass the parameter 'Body' to component 'MainLayoutRad2' with rendermode 'InteractiveServerRenderMode'. This is because the parameter is of the delegate type 'Microsoft.AspNetCore.Components.RenderFragment', which is arbitrary code and cannot be serialized.

apparently the only solution is to include rendermode InteractiveServer in app, but that would effectively make the entire webapp go Server. A big buyout just to have menu running in radzen.

No, that's not the only solution. You can put the menu in a component which is interactive and use that component in the layout.