react-query-auth

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When logging in with wrong login-details I would like to show the 401 error message from the server. How would this be possible? I am also a bit confused as the docs refer to an error that can be derived from the useAuth hook:

  const { user, login, logout, register, error, refetch } = useAuth();

But when I look at the codesandbox example it is not used, but a useState hook on the onSubmit catched error is used. Could you maybe explain how this should work?