Cannot use Material UI components in next/link on canary

[jaycenhorton]

Bug report

Describe the bug

Material UI components in next/link break next in the latest canary builds

To Reproduce

Steps to reproduce the behavior, please provide code snippets or a repository:

1. Use material UI 3.9.3
2. Use next 8.1.1-canary-24
3. Use a Material UI Component as the first child of <Link>
4. See error

A code sandbox of the bug is available here: https://codesandbox.io/s/ll0qmmm0ql

Expected behavior

You should be able to use Material UI component as the first child in a Link just as before (i.e. as was possible in next@8)

Screenshots

System information

• Version of Next.js: 8.1.1-canary-24

Additional context

You can use a standard HTML element such as <div> (or another valid child such as <>) to wrap the Material UI child and the bug is subverted.

I think the bug was introduced by #7196 in canary-20.

The bug doesn't exist in canary-19 (after downgrading, using a material UI component as the first child works fine)

The error thrown in next build is

Failed to execute 'observe' on 'IntersectionObserver': parameter 1 is not of type 'Element'

[oliviertassinari]

Material-UI v3 components don't forward the ref to the DOM node. They do in v4.