Error Placing Overlapping Square Decals Despite Disabled Collisions

Steps to Reproduce

1. Place 2 square decals onto a wall
2. Resize both to be 2 studs by 2 studs large
3. While having object collisions turned off, attempt to place one of the decals overlapping the other using either the medium or small grid size

Explanation

Small-sized square decals cannot be placed over each other anymore, even with object collisions turned off. Decals which have been placed like so before remain intact, but any attempts to recreate their placements are met with a "Can't place here!" error. My build unfortunately requires extensive use of this technique.

I have attached a screenshot of my build showing:
Wall text made using overlapping square decals where one letter was replaced with a placeholder texture to show the actual size of the decals' hitboxes.
An attempt to recreate the wall text decals' overlapping placement resulting in a "Can't place here!" error with object collision disabled and grid size set to small (note that with grid size set to medium, the square decal being placed turns invisible instead of coloring red).

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