[Webpack] Error overlay configuration

The overlay option for PreactRefreshPlugin is typed as a boolean in node_modules/@types/prefresh__webpack/index.d.ts

interface Options {
    overlay?: boolean;
    runsInNextJs?: boolean;
}

If I try to set it to true, an error will be thrown:

TypeError: The "request" argument must be of type string. Received undefined
    at Function.resolve (node:internal/modules/helpers:147:5)
    at ReloadPlugin.apply (/path/to/your/project/node_modules/@prefresh/webpack/src/index.js:135:45)
    at createCompiler (/path/to/your/project/node_modules/webpack/lib/webpack.js:81:12)
    at create (/path/to/your/project/node_modules/webpack/lib/webpack.js:154:16)
    at webpack (/path/to/your/project/node_modules/webpack/lib/webpack.js:182:32)
    at f (/path/to/your/project/node_modules/webpack/lib/index.js:78:21)
    at Object.<anonymous> (/path/to/your/project/scripts/run-dev-server.ts:14:25)
    at Module._compile (node:internal/modules/cjs/loader:1565:14)
    at Module.m._compile (/path/to/your/project/node_modules/ts-node/src/index.ts:1618:23)
    at node:internal/modules/cjs/loader:1708:10 {
  code: 'ERR_INVALID_ARG_TYPE'
}

Based on this PR: https://github.com/preactjs/prefresh/pull/289 ; I guess it expects an object with a module key, what should I pass there then?

Start with the overlay declaration in node_modules/@types/prefresh__webpack/index.d.ts and the ReloadPlugin.apply path in node_modules/@prefresh/webpack/src/index.js; compare their expectations with PR #289. Confirm the supported overlay shape, then reproduce webpack startup to verify the undefined request error is resolved.