There seems to be an additional kernel patch in conjunction with shiftfs when used above overlayfs:
https://git.launchpad.net/~ubuntu-kernel/ubuntu/+source/linux/+git/focal/commit/fs/overlayfs?id=d24b8a547be1578cb5a200ad9ac57a258f0a9de1
So it should be noted in the documentation not to use this dkms in conjunction with overlayfs.