My one concern would be it using your reaction for this and poof goes uncanny dodge.
you need a separate sneak attack charge if they do it as a reaction pop up you can even stop it from going of on low hp enemies.
Yes, agreed that sneak attack damage should be reaction-like rather than a true reaction. Just like divine smite as per the original comment. At least I assume smite isn’t consuming a reaction, though it’s really hard to tell given the current somewhat jumbled handling in EA. I have had the opportunity to smite pop up on an attack of opportunity which should imply that one or the other isn’t being counted as a reaction, but am struggling to work out exactly what is going on.