Using clsx library for conditional CSS class composition, but getting unexpected behaviour

Question

While I was learning about clsx library for conditional CSS class composition, I tried to experiment with it by implementing active links on navbar. I have created this rough nav-link component. The code works fine with pathname === link.href. When I change link.href to let's say '/dashboard' or '/dashboard/invoice', all the links get highlighted including the given link

Initial Code:

'use client';

import clsx from 'clsx';
import Link from 'next/link';
import {usePathname} from 'next/navigation'

const links = [
  { name: 'Home', 
  href: '/dashboard', 
  icon: HomeIcon },
  {
    name: 'Invoices',
    href: '/dashboard/invoices',
    icon: DocumentDuplicateIcon,
  },
  { name: 'Customers', 
  href: '/dashboard/customers', 
  icon: UserGroupIcon },
];

export default function NavLinks() {
  const pathname =  usePathname()
  return (
    <>
      {links.map((link) => {
        const LinkIcon = link.icon;
        console.log(link.href);
        return (
          <Link
            key={link.name}
            href={link.href}
            className={clsx('flex h-[48px] grow items-center justify-center gap-2 rounded-md bg-gray-50 p-3 text-sm font-medium hover:bg-sky-100 hover:text-blue-600 md:flex-none md:justify-start md:p-2 md:px-3',
            {'bg-red-200 text-red-600': pathname === link.href}
            )}
          >
            <LinkIcon className="w-6" />
            <p className="hidden md:block">{link.name}</p>
          </Link>
        );
      })}
    </>
  );
}

Final Code :

'use client';

import clsx from 'clsx';
import Link from 'next/link';
import {usePathname} from 'next/navigation'

const links = [
  { name: 'Home', 
  href: '/dashboard', 
  icon: HomeIcon },
  {
    name: 'Invoices',
    href: '/dashboard/invoices',
    icon: DocumentDuplicateIcon,
  },
  { name: 'Customers', 
  href: '/dashboard/customers', 
  icon: UserGroupIcon },
];

export default function NavLinks() {
  const pathname =  usePathname()
  return (
    <>
      {links.map((link) => {
        const LinkIcon = link.icon;
        return (
          <Link
            key={link.name}
            href={link.href}
            className={clsx('flex h-[48px] grow items-center justify-center gap-2 rounded-md bg-gray-50 p-3 text-sm font-medium hover:bg-sky-100 hover:text-blue-600 md:flex-none md:justify-start md:p-2 md:px-3',
            {'bg-red-200 text-red-600': pathname === '/dashboard'}
            )}
          >
            <LinkIcon className="w-6" />
            <p className="hidden md:block">{link.name}</p>
          </Link>
        );
      })}
    </>
  );
}