to run VRAD you'd just make sure VRAD in the Run Map dialog window is set to Normal or Fast.
If the issue still persists can you show a screenshot of what the effect looks like in-game?
I've been running it in VRAD all the time... here's a screenshot! http://imgur.com/a/Cpfib
Ya so your map is still 'fullbright' meaning the VRAD compile didn't go through (vrad is the lighting compile - there is also a map geometry compile (vbsp), and a world optimisation compile(vvis)). Optionally also restart TF2 to make sure the mat_fullbright setting resets correctly between tests.
Can you post your compile log either here or through pastebin? I suspect there is an error in the build log which would stop the map from updating correctly in-game.
If the error still persists after compiling the map with lighting you should pastebin the VMT code from inside of 'materials/custom map overlays/pyroshark overlay.vmt'.KeyValues Error: LoadFromBuffer: missing { in file materials/custom map overlays/pyroshark overlay.vmt(*LightmappedGeneric*),
Yeah it seems like VRAD isn't detecting any lighting entities - which you could use the skybox lighting or point light entities.
You may also get an error with your custom decal since the compile log is also giving the error:
If the error still persists after compiling the map with lighting you should pastebin the VMT code from inside of 'materials/custom map overlays/pyroshark overlay.vmt'.