Inserting element on click within a Content Script

Hi all, I'm having a React Component that add a click event listener on the body. When I click on a element, I want to show a dropdown below with a couple of options. How do I do this? Currently I have:
document.addEventListener('click', (e) => {
console.log(selectedListRef);
if (e.target?.localName === 'plasmo-csui') return;

e.preventDefault();
e.stopPropagation();

if (selectedListRef.current) {
// Selecting attributes mode
console.log('Selected: ', e.target);

const rect = e.target.getBoundingClientRect();
const element = (
<div
className="bg-red-500 absolute p-2 shadow"
style={{
top: `${rect.top + window.scrollY}px`,
left: `${rect.left + window.scrollX}px`,
}}
>
Foo bar
</div>
)

document.body.appendChild(element);

setSelectedAttributes((prev) => {
return [...prev, {
selector: `${e.target?.tagName}.${e.target?.className}`,
type: 'text',
preview: e.target.innerText
}]
});
}
})
document.addEventListener('click', (e) => {
console.log(selectedListRef);
if (e.target?.localName === 'plasmo-csui') return;

e.preventDefault();
e.stopPropagation();

if (selectedListRef.current) {
// Selecting attributes mode
console.log('Selected: ', e.target);

const rect = e.target.getBoundingClientRect();
const element = (
<div
className="bg-red-500 absolute p-2 shadow"
style={{
top: `${rect.top + window.scrollY}px`,
left: `${rect.left + window.scrollX}px`,
}}
>
Foo bar
</div>
)

document.body.appendChild(element);

setSelectedAttributes((prev) => {
return [...prev, {
selector: `${e.target?.tagName}.${e.target?.className}`,
type: 'text',
preview: e.target.innerText
}]
});
}
})
But I get the error Failed to execute 'appendChild' on 'Node': parameter 1 is not of type 'Node' I assume this has to do with the fact that the JSX element is not transformed or so. How to fix?