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This is currently the intended behavior. t.headset.overlay turns your app into an OpenXR overlay, and SteamVR does not support OpenXR overlays.
API layers automatically work with any OpenXR runtime/application, including LÖVR. I currently use API layers to add Ultraleap hand tracking to LÖVR, for example.
To get overlay functionality on SteamVR, we're basically either waiting on SteamVR to add support for XR_EXTX_overlay (unlikely), or for the OpenXR working group to release better overlay extensions and SteamVR to add support for those. Until then, XR_EXTX_overlay is the best way to do it. To my knowledge it only works on monado and other monado-based runtimes.
Opening any VR app in SteamVR and launching the following seems to close the original app no matter what:
conf.lua
main.lua
Development appears to have stalled on OpenXR overlays in favour of API layers it seems.
It also seems there is no LÖVR pre-built with both
overlay
and SteamVR, which is a shame, since there it probably works.OpenXR has API layers seems to be the current supported option: "OpenKneeboard currently supports overlays with: OpenXR Direct3D 11 games, via a custom API layer" (unfortunately licenses are not compatible with LÖVR).
Related:
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