Yes. The space only shows the internal flash, not overlay.

We used to show /overlay which make more sense. But there is problem as well.

For example the internal flash is 16MB. While overlay may be just 4MB, and available space is 2MB. So the UI will show 2MB free and used 50%. This looks totally correct and precise but, we got compliant that why the specs is 16MB flash but there is only 4MB shown on the UI.