[META] Add widget with modal form for adding Paragraphs

Hi, I'm new here and have been using paragraphs for a recent project.
While having the "Add" button between the paragraphs indeed improves usability, I would recommend a dropdown/dropup or popover that opens connected to the button instead of a modal. With the modal the user probably needs to go to where the modal opens with the cursor, while with the components I mentioned the options are very close to the Add button.

@poornananda You can see this proposal clearly in the original screenshot. We decided for a overlay, because it is already available.
We failed to research a library or some simple code that could help us to create the popover.

We can convert the overlay ito a popover anytime. Let's do things step by step!

And since you have a clear idea about it, please start do research on your own and contribute to get this done.
I already created the issue for you. #2881606: Convert add overlay to a popover
We are looking forward to your inputs in detail.

Making the meta issue to improve the add widget in general the parent super meta.

Oops wrong one :-)