What version of Oxlint are you using?

1.66.0

What command did you run?

oxlint --rule react/no-unstable-nested-components

What does your .oxlintrc.json (or oxlint.config.ts) config file look like?

{
  "rules": {
    "react/no-unstable-nested-components": "error"
  }
}

What happened?

The rule fires on event handler callbacks that pass JSX to a helper function like showToast. These are not component definitions — the arrow function does not return JSX.

Minimal reproduction:

function MyComponent() {
  return (
    <Button
      onClick={() => {
        showToast(<Toast label=\"Button clicked\" />);
      }}
    />
  );
}

The onClick handler never returns JSX — it calls showToast as a side effect. The <Toast /> element is an argument to a function call, not an inline component definition.

Other patterns that incorrectly trigger:

useMutation(MUTATION, {
  onCompleted: (data) => {   // ← flagged, but this is a void callback
    if (data.errors) { showToast(<ErrorToast />); }
  },
});

Expected behavior

The rule should only fire when an arrow function returns JSX (render prop / component factory). It should not fire when JSX is merely passed as an argument inside a void callback. The eslint-plugin-react implementation does not flag these patterns.