fix ensure useOnClickOutside hook correctly detects clicks across i…

…framed editor boundaries

hooks/use-on-click-outside.ts

@@ -1,4 +1,4 @@
-import { useEffect, useRef } from '@wordpress/element';
+import { useRefEffect } from '@wordpress/compose';
 
 /**
  * useOnClickOutside
@@ -7,29 +7,53 @@ import { useEffect, useRef } from '@wordpress/element';
  * @returns {object} ref to the target element
  */
 export function useOnClickOutside(onClickOutside: (event: MouseEvent | TouchEvent) => void) {
-	const ref = useRef<HTMLElement>();
-	useEffect(
-		() => {
+	const ref = useRefEffect(
+		(element) => {
+			if (!element) {
+				return;
+			}
 			const listener = (event: MouseEvent | TouchEvent) => {
 				// Do nothing if clicking ref's element or descendent elements
-				if (!ref.current || ref.current.contains(event.target as HTMLElement)) {
+				if (!element || element.contains(event.target as HTMLElement)) {
 					return;
 				}
 				onClickOutside(event);
 			};
-			document.addEventListener('mousedown', listener);
-			document.addEventListener('touchstart', listener);
+
+			const ownerDocument = element.ownerDocument || document;
+			const isRenderedInsideIframe = ownerDocument !== document;
+
+			const editorCanvasIframe = document.querySelector<HTMLIFrameElement>('[name="editor-canvas"]');
+			const editorCanvasDocument = editorCanvasIframe?.contentDocument;
+
+			ownerDocument.addEventListener('mousedown', listener);
+			ownerDocument.addEventListener('touchstart', listener);
+
+			// If the element is rendered inside an iframe, we need to listen to events on the parent document
+			// as well to detect clicks outside the iframe.
+			if (isRenderedInsideIframe) {
+				document.addEventListener('mousedown', listener);
+				document.addEventListener('touchstart', listener);
+
+			// If the element is rendered outside the editor canvas iframe, we need to listen to events on the editor canvas
+			// document as well to detect clicks inside the editor canvas.
+			} else if (editorCanvasDocument) {
+				editorCanvasDocument.addEventListener('mousedown', listener);
+				editorCanvasDocument.addEventListener('touchstart', listener);
+			}
 			return () => {
-				document.removeEventListener('mousedown', listener);
-				document.removeEventListener('touchstart', listener);
+				ownerDocument.removeEventListener('mousedown', listener);
+				ownerDocument.removeEventListener('touchstart', listener);
+				if (isRenderedInsideIframe) {
+					document.removeEventListener('mousedown', listener);
+					document.removeEventListener('touchstart', listener);
+				} else if (editorCanvasDocument) {
+					editorCanvasDocument.removeEventListener('mousedown', listener);
+					editorCanvasDocument.removeEventListener('touchstart', listener);
+				}
 			};
 		},
-		// Add ref and handler to effect dependencies
-		// It's worth noting that because passed in handler is a new function on every
-		// render that will cause this effect callback/cleanup to run every render.
-		// It's not a big deal but to optimize you can wrap handler in useCallback before
-		// passing it into this hook.
-		[ref, onClickOutside],
+		[onClickOutside],
 	);
 
 	return ref;