SwiftUI: Prevent Image() from expanding view rect outside of screen bounds

You have to limit the frame size of the out-of-bounds Image before it is being picked up by the ZStack to avoid the ZStack to grow and so the Overlay to go out of position.

edit: aheze shows with his answer a way around using GeometryReader by putting the Image into the background of Overlay() with .background(Image()..). This avoids the usage of ZStack and GeometryReader completely and is possibly a cleaner solution.

Based on parent view size

struct IgnoringEdgeInsetsView2: View {
    var body: some View {
        ZStack {
            GeometryReader { geometry in
                Image("smile")
                    .resizable()
                    .aspectRatio(contentMode: .fill)
                    .edgesIgnoringSafeArea(.all)
                    .frame(maxWidth: geometry.size.width,
                           maxHeight: geometry.size.height)
            }
            Overlay()
        }
    }
}

Based on screen size

struct IgnoringEdgeInsetsView: View {
    var body: some View {
        ZStack {
            Image("smile-photo")
                .resizable()
                .aspectRatio(contentMode: .fill)
                .edgesIgnoringSafeArea(.all)
                .frame(maxWidth: UIScreen.main.bounds.width, 
                       maxHeight: UIScreen.main.bounds.height)
            Overlay()
        }
    }
}