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While an overlay is loaded with the pause option switched off, stuff breaks. Objects in the scene under the overlay can't destroy themselves or destroy anything actually, but they can still do other stuff like rotate to angles, move to points, detect collisions etc.
I'm not exactly sure what else breaks, I think there may have been more but if there are I've forgotten about them. I'm using this for my menus so I can de load them giving as much memory as possible to my actual game while the menu is not open.
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Played around with it some more. The second the overlay is closed, the object destroys itself even though the object was meant to destroy itself like a minute ago, and did not trigger the destroy object behaviour when the overlay was closed.