The example is running from recent WinPython distribution (Jupyterlab 4.0.4), but the same issue happens for me using a conda dev environment running on WSL. The JupyterLite example works correctly, but everywhere else I've tried this has similar behaviour to that shown below.
Running through widgets.ipynb from the examples folder code. The panels appear, but the contents do not show up.

Dragging the panels about can make the contents appear.
