This is not really a bug, Vulkan doesn't really have the concept of exclusive fullscreen mode the same way that DXGI does, so drivers on Windows tend to "optimize" Vulkan applications into an equivalent of exclusive fullscreen mode because it gives them a slightly faster presentation path.

TL;DR won't/can't fix, especially since this is a complete non-issue on Linux.

In the dxvk.conf file try setting dxgi.tearFree = True and dxgi.syncInterval = 0

Facing the same issue on another MMO called Soulworker. Borderless Windowed runs Exclusive Fullscreen. I have apps showing on top of the game usually (e.g. a DPS parser) and Exclusive Fullscreen shows on top of such apps no matter what.

Would be interesting if someone found a workaround to the problem. Will try the one proposed by @vlad54rus once I get home and report back.

UPD: Tried it and it doesn't solve the issue.

Thank you for the suggestion. Unfortunately, I tried it and it didn't make any difference. I agree, it would be great if there were a workaround to this. But if it isn't possible, then I understand.

For the record, I am a Linux user, but I'm still stuck on a Windows virtual machine for my gaming as one of my games still uses anti-cheat software that refuses to work on Linux. Thanks for all your hard work on this.

@AFNGP Are you on AMD or NVIDIA? Do you still have this issue?

@vlad54rus I'm on AMD, and tried those settings, overlays such as volume control didn't work. Happy to try if you have other suggestions, ty [oops I should specify I'm testing this with guild wars 2 with borderless window selected, but my understanding this problem is general.]