NavigationStack not working correctly in sheet

I am currently trying to build a NavigationManager with programmatic navigation. For that I'm using the NavigationPath combined with NavigationDestination. Sadly facing the following issue:

navigationDestionation is not being recognised when located in sheet. Im receiving the following message when trying to update the path of the NavigationStack within the sheet.

A NavigationLink is presenting a value of type “PathType” but there is no matching navigationDestination declaration visible from the location of the link. The link cannot be activated.

Note: Links search for destinations in any surrounding NavigationStack, then within the same column of a NavigationSplitView.

Here is some simplified code snipped of the implementation.

struct RootView: View {
    @State private var isPresented: Bool = true

    var body: some View {
        Button("Open Modal", action: {
            self.isPresented.toggle()
        })
        .sheet(isPresented: self.$isPresented, content: {
            ModalContent()
        })
    }
}

private struct ModalContent: View {
    @State private var path = NavigationPath([PathType.configuration])

    var body: some View {
        NavigationStack(path: self.$path) {
            VStack {
                Text("Placeholder")
            }
            .navigationDestination(for: PathType.self) { pathType in
                switch pathType {
                case .configuration:
                    Text("Configuration")
                default:
                    Color.red
                }
            }
        }
    }
}