Screen overlay (handles) vanish

Problem 1 - Handles do vanish inside system settings

Android 12 allows to hide ALL overlays inside system setting views to protect your privacy and this setting is enabled by default.

Solution

If you really want to disable this behaviour, it can be disabled inside the developer settings but be aware that you just can deactivate this behaviour for all apps at once and not on an per app base.

Problem 2 - Handles do vanish inside some apps

Android 12 allows every app to decide if an overlay above it is allowed or not. This feature is a security feature as well. Like banking apps e.g. can disable screenshots inside them they now can as well disable overlays above them.

Solution

This is security feature and there’s no way to cirucmvent this. Apps with sensible information inside them may prevent overlays from being disabled above them to avoid visual influences and similar possible attempts to manipulate an app.