This is a bug that hasn’t been resolved yet from the previous versions of Retroarch (windows version) and Beetle PSX HW:
If you define two overlays and set driver to Vulkan (both on Core options and driver section) the first overlay is displayed correctly. If you press the key to change to the next overlay, the first overlay is removed but the next overlay doesn’t display at all.
All other cores work fine (including non-hardware version of Beetle PSX) and overlays are displayed and change correctly! Only with Beetle PSX HW the next overlay does not load.