Problem

When popovers (OverflowMenu, Toggletip, etc.) are nested inside Modal/ComposedModal, pressing Escape doesn't follow expected behavior. Ideally, it should close the topmost element (popover) first, then the modal. Currently, behavior is inconsistent - in some cases like OverflowMenu, only the Modal closes, leaving the menu open without its trigger button.

Goal

Find a solution for proper escape key and click-outside behavior when popovers are nested inside modals.

Scope

1. Test component combinations - Identify which components are affected when placed inside Modal: OverflowMenu, Toggletip etc.
2. Evaluate solutions:

• Registration model for tracking modal/popover stack (concerns: backwards compatibility, complexity)
• Simple refactoring opportunities in existing components
• Platform-based approaches (dialog + Popover API)

3. Define expected behavior - Should Escape close both or topmost first?

Deliverables

• Component behavior matrix showing current issues
• Recommended solution approach with implementation considerations
• Any quick wins that can improve current state