Posting code on the internet - dangerous business!
I think the counter updates should use functional updates, since they depend on the current state. My understanding is that this can lead to a potential race condition, although I'm not 100% on the details.
setCounter(currentCounter => currentCounter + 1)
Interestingly your code is similar to some the first code in the basic 'into to hooks' section of the docs. Perhaps it's not a huge issue? Maybe somebody else who knows a bit more about React internals can chime in.