We're either talking about two different things or you are missing the forest in the trees.
The value proposition of FP doesn't come from whether you feel like you're doing FP during implementation. It can only be assessed from the perspective of the caller. The caller doesn't care about the philosophical differences of how you achieve internal mutation or the implementation thereof.
They only care about whether you are returning the same result when they give you the same arguments. That's how you satisfy a function interface.
A component that keeps track of internal state with useState and modifies it via event handlers does not satisfy a functional interface, because given the same props, it may or may not return the same docoument fragment.
One cannot pass in the same state, nor can one see the state from the return value. The signature of a component that uses useState and event handlers to modify it, _hides_ internal state from the caller. A component like that doesn't satisfy a functional interface but does in fact hide an object interface via local retention and message passing.
Vice versa, a component that bangs on an internal variable in order to derive/calculate values that it returns, can satisfy a functional interface from the caller's perspective. Similarly you can use useState and useEffect to implement a functional interface. It all comes down to whether you are giving the same answer for the same question, which is typically not what you're doing with hooks.
Note that I'm not making a value judgement about whether a component is a function or an object (via hooks). If you need an object, then write an object. But be aware of the tradeoffs of writing a function vs an object and be upfront about it to your caller.