Attempting to launch Minecraft 1.16.4 with Fabric Loader 0.10.8 and with the following mods in the mods folder:

fabric-api-0.29.1+1.16.jar
light-overlay-5.6.0.jar

The log shows that the following mods are installed:

[✔️] fabric-api-0.29.1+1.16
[✔️] light-overlay-5.6.0

However, shortly afterward, the log produces the following error message:
net.fabricmc.loader.discovery.ModResolutionException: Could not find required mod: lightoverlay requires {fabric-api @ [>=0.29.1]}

Is a different version of fabric-api needed or is light-overlay's sanity checker just not detecting the version correctly?