onChange Not Updating State At Correct Time

I’m trying to save the value of the input field to state. When the defaultValue is ‘projectName’, and I delete the word ‘Name’ from the input field, I want the state to update so that the defaultValue is ‘project’. When I console.log e.target.value in the onChange, I can see the change happening when I make the deletion, and my code in the onChange is saving the value to state, but unfortunately, the state does not update. Any thoughts as to why?

Here is a Code Sandbox: https://codesandbox.io/s/amazing-river-o15h4?file=/src/Child.js

… And here is a screenshot of the console.log in the onChange and the setState call not updating:

App.js

import "./styles.css";

import Child from "./Child";

export default function App() {
  const thisIsState = {
    id: 1,
    projectName: "projectName",
    description: "description"
  };

  return (
    <div className="App">
      <Child project={thisIsState} />
    </div>
  );
}

Child.js

import { useState, useEffect } from "react";
import "./styles.css";

export default function Child(props) {
  console.log(props);
  const [state, setState] = useState({
    projectName: "",
    description: ""
  });

  let project = props.project;
  let errors = props.errors;
  useEffect(
    (state) => {
      setState({
        ...state,
        projectName: project.projectName,
        description: project.description
      });
      console.log("useEffect1 state: ", state);
    },
    [project, errors]
  );

  const onChange = (e) => {
    console.log("e.target.value in onChange: ", e.target.value);
    setState((state) => ({
      ...state,
      [e.target.name]: e.target.value
    }));
    console.log("onChange() state: ", state);
  };
  return (
    <div className="App">
      <form>
        <input
          type="text"
          placeholder="Project Name"
          name="projectName"
          defaultValue={props.project.projectName}
          onChange={onChange}
          style={{ marginBottom: "15px" }}
        />
        <br />
        <input
          type="text"
          placeholder="Project Name"
          name="projectDescription"
          defaultValue={props.project.description}
          onChange={onChange}
        />
      </form>
    </div>
  );
}