Laggy app overview button when using Muzei

After updating to Android 16 (BP2A.250705.008) a user experiences a “laggy” overview button when using button navigation. The overview button does not react for a while, after which it will act out the buffered actions.

The issue appears after Muzei switches the wallpaper in the background.

Once it starts working again, it works like normal until they stop using their phone again for some time.

Issue was reproduced on Lawnchair.