First of all, the screenshot you're showing in-game in the RED spawn, while the one you took off Hammer is on the BLU spawn. Second,
nobody listened to me when I
reported the entity's visual glitch so it hasn't been said in your post earlier: this is a bug from Valve's side and not yours. The game is so broken to a point where they break the most unrelated things, some of them being the
info_observer_point entity (official Casual/Competitive servers) and the
func_respawnroomvisualizer (any server). Apparently, the overlay is only shown over static brushes and props. However, if you reload the map or load it after another one, the overlay will be showing up properly on all surfaces.