Firstly I suppose you are using @mui/material v6.
Grid2 is different from Grid, Grid2 has no item or xs props,
It's like:

<Grid2
   size={{ xs:7, md: 4, lg: 1 }}
>
</Grid2>

https://v6.mui.com/material-ui/react-grid2

Secondly Grid2 is deleted from @mui/material v7, they replaced old Grid with Grid2 and renamed it to Grid.
https://v7.mui.com/material-ui/react-grid/