<Modal /> and <Dialog /> Components pushed behind floating windows

[PondPackMan2023]

Describe the bug

I have a widget that uses the component to display a dialog to the user to enter some input. With 4.16.5, the dialog is pushed behind the window it was opened. The widget is a floating window my electron app.

This is a regression. I am pretty sure that 4.16.4 did not have this issue.

To Reproduce

No response

Expected Behavior

The or window should stay at the very top of the UI.

Screenshots

Menu item "Add Return Period" opens a dialog.

No window appears:

If you shrink the size of the floating window, you'll see the modal dialog:

Desktop (please complete the applicable information)

iTwin.js: 4.9.0-dev.22
iTwinUI: 3.14.2
AppUI: 4.16.5
React: 17.0.2
Node.js: 20.9.0
Electron: 29.1.0

Additional context

No response

[GerardasB]

I'll need more details for this issue. Can not reproduce in our test-app.
Rendering a portalled Dialog or Modal components of iTwinUI seems to work fine from AppUI widgets https://github.com/iTwin/appui/blob/64a540e8675869d62f777da8f36998993cc72b24/apps/test-app/src/frontend/appui/frontstages/ElementStacking.tsx#L234C8-L234C18
You can play around with it in AppUI test-app at http://localhost:3000/blank?frontstageId=element-stacking