error overlay

I wrapped my whole app (_app.tsx) in an ErrorBoundary with the message "Something went wrong". Then I throw an error in the api, and set useErrorBoundary of the custom hook to true. I do see that the UI has changed to the fall back UI ("Something went wrong"). I am also aware that the error modal doesn't appear in prod. My question is, is this expected behavior in Next.js? Even if the app is wrapped in an error boundary, the error modal still shows up?