useTransition and revalidatePath does not work as expected when inside is executed server action and that code is used in Parallel and Intercepted Route

[grzegorzpokorski]

Link to the code that reproduces this issue

https://github.com/grzegorzpokorski/next-usetransition-server-actions-revalidation-issue

To Reproduce

Strange useTransition behavior and navigation crashing:

1. Clone bug reproduction repo, install dependencies, build and run app.
2. Go to /
3. Click on go to cart link which leads to /cart page - after that should apear intercepded & parallel 'modal' page.
4. Click 'fetch data' button which execute server action using useTranstion hook to indicate if is pending.
5. On modal page should appear fetched data but button still should have fetching label even after data are successfully fetched.
6. Click close modal button - in browser address bar url should change from /cart to /, but modal does not disappearing, other links also stops working.

ReavalidatePath does not work in server actions executed on parallel and intercepted route:

1. Clone bug reproduction repo, install dependencies, build and run app.
2. Go to /cart
3. Click 'fetch data' button which execute server action.
4. After while fetched data should appear, but button label still displays 'fetching'; link named 'go Home' also stops working; another request on /cart does not revalidating after executing server action.

Current vs. Expected behavior

Current behavior was described in "To Reproduce" section above.

When you remove ./src/app/@modal directory from project - just simply remove parallel and intercepted route for /cart everything work fine. It means:

• server action state is correctly indicated using useTransition hook,
• navigation work as should,
• another requests on /cart page are revalidating after execution server action with revalidatePath.

Above behavior is expected also to situation when parallel and intercepted route is in use.

Verify canary release

• I verified that the issue exists in the latest Next.js canary release

Provide environment information

Operating System:
  Platform: linux
  Arch: x64
  Version: #1 SMP Fri Jan 27 02:56:13 UTC 2023
Binaries:
  Node: 18.11.0
  npm: 8.19.2
  Yarn: 1.22.19
  pnpm: 8.6.0
Relevant Packages:
  next: 13.5.3-canary.3
  eslint-config-next: 13.5.3-canary.3
  react: 18.2.0
  react-dom: 18.2.0
  typescript: 5.2.2
Next.js Config:
  output: N/A

Which area(s) are affected? (Select all that apply)

App Router, Routing (next/router, next/navigation, next/link)

Additional context

No response

[johnrazeur]

Linked to #54723