Yes. The reason being that the evidence, the recording, is modified AFTER it leaves the camera rather than being directly written as data. If it is modified in that way, it can be modified in other ways. In short it is not a direct representation of what comes from the camera. Lawyers get rich using little details like this, but that's their job.
Additionally, adding that overlay does add CPU utilization to one degree or another. The more cameras you have, the more is added because every stream needs to be modified. With substreams, now, that may not be very significant, but in terms of evidence it can be a disqualifying factor. A time server, running on the same PC uses next to nothing and will keep all the cameras truly synced in terms of time.