Why Position:Sticky Is Not Working When the Element Is Wrapped Inside Another One

.nav-wrapper {
  position: absolute;
  bottom: 0;
  border: 2px solid;
}

.nav-wrapper nav {
  position: sticky;
  top: 0;
}

body {
  min-height:200vh;
}

<div class="nav-wrapper">
  <nav>
    <a href="#">
      <li>Home</li>
    </a>
    <a href="#">
      <li>About</li>
    </a>
  </nav>
</div>

Why position sticky is not working in my code?

Its because you have overflow-x-hidden in parent . sticky doesn't work if parent overflow is hidden.

{!categorySearch && (
        <div className="max-w-2xl mx-auto z-40 relative  font-metropolis_semibold">
          <div className="sticky top-0">
            <div className=" z-40 bg-white w-full transition-all">
              <div
                id="logo"
                className={
                  logo
                    ? "px-md mt-10 font-medium"
                    : "px-md mt-10 font-medium animate"
                }
              >
                <div className="overflow-x-hidden ">
                  <img
                    src={settings.logo_intro_image_url}
                    alt={settings.name}
                    className="max-w-full object-contain company-logo"
                    style={{ height: settings.logo_height }}
                    id="company-logo"
                  />
                </div>
              </div>
              <div
                className={`${
                  logo
                    ? "shadow-none border-none"
                    : "border-b-2 border-gray-200"
                }`}
              >
                <TopOptions
                  showOption={showOption}
                  setShowOption={setShowOption}
                  addBorder={logo}
                  outlets={outlets}
                  languageLabels={languageLabels}
                  settings={selectedOutlet.settings}
                />
              </div>
            </div>
            {Object.keys(bannerArray).length === 1 ? (
              <div className="w-full px-md border-b-8 border-banner pb-md">
                {bannerArray &&
                  bannerArray.map((banner, index) => {
                    return (
                      <>
                        <PosterSlider
                          key={index}
                          image={banner.image}
                          loadingBanners={loadingBanners}
                          isSingle={Object.keys(bannerArray).length === 1}
                        />
                      </>
                    );
                  })}
              </div>
            ) : (
              <div className="max-h-full h-19.7 hide-scroll px-md flex overflow-x-auto gap-5p border-b-8 border-light-bg-gray">
                {bannerArray &&
                  bannerArray.map((banner, index) => {
                    return (
                      <PosterSlider
                        key={index}
                        image={banner.image}
                        loadingBanners={loadingBanners}
                        isSingle={Object.keys(bannerArray).length === 1}
                      />
                    );
                  })}
              </div>
            )}
            <div className="flex flex-row justify-between items-center px-md my-25p">
              <p className="font-metropolis_regular text-sm break-words">
                {languageLabels.like_to_order}
              </p>
              <img
                src={Search}
                alt="search"
                onClick={() => setCategorySearch(true)}
              />
            </div>
            <div className="grid grid-flow-row w-full grid-cols-2 place-items-center gap-10p px-md pb-20">
              {categoryList.map((category) => {
                // console.log(category);
                return (
                  <Dishes
                    key={category.category_id}
                    category={category}
                    languageLabels={languageLabels}
                    loading={loadingCategories}
                  />
                );
              })}
            </div>
            <BottomNavigation
              languageLabels={languageLabels}
              isLoyalty={settings.enable_reward_points_functionality}
            />
          </div>
        </div>
      )}

Position sticky not taking effect

The sticky element in your fiddle has no height setting - use a set height to avoid that, then the sticky position works:

https://jsfiddle.net/rocz5nL1/

Why position sticky is not working on my nav?

when an element with a position: sticky style is wrapped, and it is the only element inside the wrapper element, this element, which was defined position: sticky will not stick. Instead of .header__div-nav please add position: sticky to your header

#header {
  position: sticky;
  top: 0;
}