Overlay with a view with style={zIndex} blocks touches

[M-i-k-e-l]

What happened?

Overlay that has a view which has a style that includes zIndex behaves as if interceptTouchOutside is true when it is false.

To reproduce:

1. Checkout overlay-with-zindex (current master slightly modified, see diff)
2. yarn -> yarn start -> install the app
3. Go to the Navigation tab
4. Back Button
5. Show Overlay
6. (Try to press on) Modal

You cannot press on the buttons

What was the expected behaviour?

Pressing Modal can be done and the modal is opened

Was it tested on latest react-native-navigation?

• I have tested this issue on the latest react-native-navigation release and it still reproduces.

Help us reproduce this issue!

See steps above

In what environment did this happen?

React Native Navigation version: 8.1.0
React Native version: 0.77.2
Has Fabric (React Native's new rendering system) enabled: (yes/no) yes
Node version: v22.13.1
Device model: emulator
Android version: API 34