Wiring LZW31 to transformer that runs Low Voltage lights

I plan to use an LZW31 I have to control the 120 side of a transformer that will in turn dim low voltage lights. I’d like to confirm my understanding that since I need a neutral at the LZW31, I connect the white/neutral wire coming from the switch to the white/neutral wire going from the 120 to the input at the transformer - ie all three white wires connect together.
The directions that come with the transformer show the below diagram, without a white neutral wire coming from the switch - my connections happen in a j-box which I’ve drawn as the red box, and the white line I drew is my proposed neutral connection and the green lines I drew are my proposed ground connections.

Trying to confirm the lines I’ve drawn are correct…

A typical dumb switch/dimmer wouldn’t need a neutral, which is why it isn’t shown there. Your diagram looks correct to me.

Does the transformer support line dimming?

Yes, that is specifically what I told them I wanted to purchase, and what I believe the wiring diagram for the transformer (posted above) shows. However, please advise if I have misinterpreted that diagram.

It does indicate dimmer, my bad, I’m blind today I guess. Seems like a workable solution!