Is it possible to create an Overlay if we use the component integration?

Yes. If you develop a component that use the ImageViewerWpfControl to show the video, you have methods to do overlay.

ShapesOverlayAdd, ShapesOverlayRemove and ShapesOverlayUpdate are the functions to use.

https://doc.developer.milestonesys.com/html/index.html?base=miphelp/class_video_o_s_1_1_platform_1_1_client_1_1_image_viewer_wpf_control.html&tree=tree_search.html?search=shapesoverlay

The samples that use this are plugin samples, fortunately these classes are the same and used in the same way no matter if you do plugin or standalone.

https://doc.developer.milestonesys.com/html/index.html?base=samples/pluginsamples/videopreview/readme.html&tree=tree_1.html

https://github.com/milestonesys