I tested it and have the same issue:
But it’s not an issue with overlays at all or the technic behind.
I testet it on PC with an 1080p display and all looks fine as it should:
I could imagine:
– It’s a problem with the Retroarch build. If you compile the Retroarch binarys on RPi several things differs from the original Retroarch which is contained in the Retropie image 3.0.2 Beta although the version Number is the same.
– It’s a problem with the HDMI output of the RPi