Implementing search in array of items in a recursive fashion: React JS

I am using an array of objects to draw a tree recursively. I am able to bring up the tree with all the expand collapse related functionality. I have somewhat implemented the search functionality that searches across the tree. If leaf is matched, i show all the nodes expanded upto that node. When intermediate or root node is searched, I should show that in collapsed state which can then be expanded

But when I search the first level or intermediate parent nodes, the search gives me the proepr result, but when I try to open its children, its empty. Also the icon seems to be expanded when I search for any parent.

For example when i search Category1 the tree shows me Category1 with expanded icon (which shouldve been collapsed state), and when try to expand its empty.
When I search Applications the tree shows right hierarchy from Category 1 to Applications, but Applications will be in expanded state and no children is shown there as well.

Can someone tell me whats wrong that I am doing

Sandbox: https://codesandbox.io/s/searching-c1m50i?file=/src/DrawnTree.jsx

Code I tried so far

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

const DrawnTree = ({ treeData, currentActive, setCurrentActive }) => {
  const [search, setSearch] = useState("");

  const containsNodesWithTerm = (nodes, searchTerm) => {
    const ids = [];
    const _traverse = (nodes, searchTerm) => {
      nodes.forEach((node) => {
        if (node.name.toUpperCase().includes(searchTerm.toUpperCase())) {
          ids.push(node.key);
        }
        if (node.nodes.length) {
          _traverse(node.nodes, searchTerm);
        }
      });
    };
    _traverse(nodes, searchTerm);
    return ids.length;
  };

  const filterNodes = (nodes, searchTerm = "") => {
    const _filter = (nodes, searchTerm) => {
      nodes.forEach((node) => {
        if (
          node.name.toUpperCase().includes(searchTerm.toUpperCase()) ||
          containsNodesWithTerm(node.nodes, searchTerm)
        ) {
          node.visible = true;
          node.opened = true;
        } else {
          node.visible = false;
        }
        if (!searchTerm) {
          node.opened = false;
        }
        if (node.nodes.length) {
          _filter(node.nodes, searchTerm);
        }
      });
    };
    _filter(nodes, searchTerm);
    return nodes;
  };

  const filteredTree = filterNodes(treeData, search);

  return (
    <div>
      <input type="text" onChange={(e) => setSearch(e.target.value)} />
      <div className="tree-list-section">
        <div className="left-holder-bottom-list-section">
          {filteredTree.map((node) => (
            <Node
              key={node.key}
              node={node}
              level={0}
              currentActive={currentActive}
              setCurrentActive={setCurrentActive}
            />
          ))}
        </div>
      </div>
    </div>
  );
};

export default DrawnTree;

import React, { useEffect, useState } from "react";
import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";

export const Node = ({ node, level, currentActive, setCurrentActive }) => {
  const { name, key, nodes, visible, opened } = node;

  const [isOpen, setIsOpen] = useState(opened);
  const hasChildren = !!node?.nodes?.length;
  const nodeType = level === 0 ? "node" : !hasChildren ? "leaf" : "group";
  const activeClassName = currentActive === name ? "active" : "";

  useEffect(() => {
    setIsOpen(opened);
  }, [opened]);

  if (!visible) {
    return null;
  }

  return (
    <>
      <div
        className={`list-row level-${level} ${nodeType} ${activeClassName}`}
        onClick={() => {
          setIsOpen((open) => !open);
          if (!hasChildren) {
            setCurrentActive((prevName) => (!(prevName === name) ? name : ""));
          }
        }}
        key={key}
      >
        <div
          className="list-item-holder"
          style={{ paddingLeft: `${level === 0 ? "16" : 40 * level}px` }}
        >
          {hasChildren && (
            <div className="list-item-expander-holder">
              <span
                className={`expand-collapse-icon ${
                  isOpen ? "collapse" : "expand"
                }`}
              >
                <span className="expand-icon">
                  <FontAwesomeIcon icon="caret-down" />
                </span>
                <span className="collapse-icon">
                  <FontAwesomeIcon icon="caret-right" />
                </span>
              </span>
            </div>
          )}
          <div className="list-item-details-holder">{name}</div>
        </div>
      </div>
      {isOpen && hasChildren && (
        <div className="list-row-children">
          {nodes.map((node) => (
            <Node
              key={node.key}
              node={node}
              level={level + 1}
              currentActive={currentActive}
              setCurrentActive={setCurrentActive}
            />
          ))}
        </div>
      )}
    </>
  );
};