It also is buggy the other way around. Having a simple interactive component (e.g. checkbox) on a frame that’s shown as an overlay do not allow interactivity yet.
These topics also mentions that interactive components do not work together nicely with overlays: Interactive Components / Variants on Overlays
Interactive Component not working in overlay - #2 by Nate_Green
Did not seem to be fixed with the official release of interactive components. Hope improvements on variants/interactive/overlays will get deployed soon!