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[BUG] Overlays teleport when launching an OpenXR application using LOCAL reference space #920

Description

@ImSapphire

Describe the bug
Overlays seem to teleport away when launching hello_xr using LOCAL as the reference space. The SteamVR Dashboard does not seem to be affected, only external applications using the IVROverlay interface, like WayVR.

To Reproduce
Steps to reproduce the behavior:

  1. Launch an overlay application. WayVR was used for testing.
  2. Make sure you can see the overlay. For WayVR you can just bring up the dashboard, or hold your hand in front of you and then open the SteamVR dashboard to freeze the watch overlay.
  3. Launch hello_xr with hello_xr -g Vulkan2
  4. Overlay teleports away

Expected behavior
Overlays don't teleport

System Information (please complete the following information):
Please use the latest Steam beta client and SteamVR beta for your bug reports!

  • Steam client version (build number or date): 1784145295
  • SteamVR version: 2.17.4
  • Distribution (e.g. Ubuntu): NixOS
  • Steam runtime diagnostics: steam-runtime-diagnostics.txt
  • Steam and SteamVR logs: steam-logs.tar.gz
  • Minidumps: [no response]

Screenshots
steamvr_overlay_space.mp4

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