I can't open your CAPX because it has an add-on.
You are using overlapping so check your collision boxes. If I understand your problem you want the wheels to stop turning when the box is no longer overlapping the center of the wheel and that looks like a collision box problem.
Make that collision box on the wheel very small and it should work. You can also adjust the collision box on the box you move to be smaller to end the overlap sooner.
EDIT: Sorry I am looking at Myrmex gif and thought it was your example but still check your collision boxes when using overlap as a trigger.