Dumb rotary dimmer for Hue lights

Currently, I have a Buster and Punch dimmer switch that the family is rather in love with, operating normal pendant lights. I’d like to change out the lightbulbs for Hue, but the switch won’t make sense at that point. I’d like to turn the switches “smart”, but it doesn’t seem like any solution exists to do this. In the UK, there is the new Candeo RD1-Pro, which I could fit the switch onto. But I cannot find an equivalent in the USA.

So a potential hacky solution is to split the wiring in front of the switch, run one line to the Shelly Dimmer and that to the dimmer switch, and the other split as constant power to the lights. Here’s a diagram:

I’d love any and all critiques of this solution or pointers to products that would get me where I’m trying to go. The critical bit is just using my dumb rotary dimmer switch.

Any thoughts? Thanks!

Edit: Ignore “SW1” label, meant to be Shelly Dimmer Gen 4.

I did a similar thing but with a rotary encoder.
Basically I just removed the dimmer board, and reuse the dimmer button and switch plate

That’s not gonna work in your diagram because SW1 is meant for momentary switch

RIGHT that’s a label I meant to change. Should be the Shelly Dimmer Gen 4 (think it’s S4DM).