I have the same problem: Neither overlay mode 1 nor mode 2 works. Only RGB mode works.
In mode 1 it only shows a black screen and in mode 2 it says "overlay failed".
Till yesterday everything worked fine.
I had the message "overlay failed" sometimes before (when I used several players at the same time) but then it worked anyway. Probably it changed automatically to RGB mode or something.
I don't know what happened, that overlay does not work anymore now.
Really strange!
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