Nothing really, its been an issue with Steam overlay for a long while now, and there hasn't been a fix. You are best to keep it disabled in the Steam settings.

I have found that in Windows the Xbox game bar app plug in to use MS Edge in the overlay works really well, so that is an alternative you can consider.

:O seems like im going to try that, turning xbox game bar On again hahah Thanks for the tip

This and other issues with the steam overlay pop up relatively often. It crashes the game, hangs and won't retract, somehow manages to drop steam login connectivity so source game servers drop you, causes severe stuttering and frame rate drops, etc.

steam is pretty buggy software in and of itself, and the overlay mixes that with the complexities of game/rendering, so it's not surprising it causes a lot of issues.

Disabling it sometimes solves it, but depending on how valve implemented it that month, the disable may not do the trick. Sometimes, 'disable' means it still pops up an overlay if you press shift+tab, but the overlay has no functionality (so, technically, disabled).

If any other overlay works and lets you open a browser window, you could set that browser's homepage to https://gtm.steamproxy.vip/chat and use it to at least get some sort of chat, even though invites etc. won't work.
Just make sure it's something that keeps the browser up to date (a browser more than one month out of date is typically a swiss cheese of security holes).

I have the same problem now, yesterday te overlay works fine, Idk what's happening