Is there a chance you have this as a non-circle shape before you changed it to cirlce?
I just tried to have this behaviour in a test app. This is what I see when I have an “Overlay” setup on tile shape being “Square”.
Then when I change it to “Circle”, the overlay does not go away.
The fix seems to be changing it back to non-circle, change the text style position to “Below”, and then go back to “Circle” shape.
