The idea is quite simple and it exists already in Figma. When you have a dialog displayed as an overlay, it often changes its content as the user interacts with it (I don't want to create a component for that - it shouldn't be the purpose of the component feature and it makes the component panel messy.) So when creating a link between 2 states of an overlay, I would like to have an option to switch the overlays.

Then It would be awesome if the option "close overlay" would close the overlay (the "previous artboard" is not helpful here).

Well, just please do it as Figma does (or better).