Tap Gesture on Subview disables drag gesture on super view

I have the following two views in SwiftUI. The first view GestureTestView has a drag gesture defined on its overlay view (call it indicator view) and has the subview called ContentTestView that has tap gesture attached to it. The problem is tap gesture in ContentTestView is blocking Drag Gesture on indicator view. I have tried everything including simultaneous gestures but it doesn't seem to work as gestures are on different views. It's easy to test by simply copying and pasting the code and running the code in XCode preview.

import SwiftUI

struct GestureTestView: View {

   @State var indicatorOffset:CGFloat = 10.0

   var body: some View {
     
      ContentTestView()
         .overlay(alignment: .leading, content: {
        
             Capsule()
               .fill(Color.mint.gradient)
               .frame(width: 8, height: 60)
               .offset(x: indicatorOffset )
               .gesture(
                  DragGesture(minimumDistance: 0)
                    .onChanged({ value in
                          indicatorOffset = min(max(0, 10 + value.translation.width), 340)

                    })
                    .onEnded { value in
                       
                    }
            )
       })
  }
}

 #Preview {
    GestureTestView()
 }

struct ContentTestView: View {

   @State var isSelected = false

   var body: some View {
       HStack(spacing:0) {
         ForEach(0..<8) { index in
              Rectangle()
                .fill(index % 2 == 0 ? Color.blue : Color.red)
                .frame(width:40, height:40)
          }
         .overlay {
             if isSelected {
                 RoundedRectangle(cornerRadius: 5)
                    .stroke(.yellow, lineWidth: 3.0)
            }
          }
    }
     .onTapGesture {
         isSelected.toggle()
     }
    }
 }

#Preview {
   ContentTestView()
}