Embed always appear on top of other elements

Embeds appear to always stack on top of all other element types regardless of stacking order. It's not possible to put any shapes, text, etc on top of them.

They still appear to have a stacking order, and it's still possible to set stacking order of embeds in relation to each other, but they are always on top of other elements. This makes it impossible to e.g. highlight a portion of an embedded element.

Demo steps: https://github.com/user-attachments/assets/b162b952-def6-409e-895d-eb3a913518c6