I'm trying to understand Calendars and overlays - HELP

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I have a vacation calendar in SharePoint online. When an employee requests vacation they must also select their group as this routes the approval (power automate) to the correct approvers. I have created a view for each team and an overlay for each view(calendar). When I go to the vacation calendar I see nothing. When I go to the view for Team 1, I see the approved requests for team 1. When I go to the view for team 2 I see all the approved requests for Teams 1 & 2. I don't get it. The bottom line is how do I apply these overlays to my vacation calendar so when I view it I see all the teams approved vacation time in there overlay colors?

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