I know it sounds stupid but have you tried removing the space between the overlay and background, if anything on my script is misspelled I get errors with the overlays all the time, saying it doesn’t exist. the other thing you may want to try is at the court witness box to the background ex.
INT. COURT AND WITNESS BOX - DAY with COURT WITNESS BOX
and make the opacity 0 from the beginning, I am forever having trouble with the create overlay command