Yeah, but does it target only the single instance of the object that's overlapping?
'on collsion' or 'on overlap' (found in the sprites conditions) selects the player as well as the overlapping sprite(s).
All sprites that, on the moment of checking, overlap the other sprite. Meaning, if you got multiple sprites overlapping, you mostly should use 'for each sprite'. Or combine it with a pick condition that filters some more.
None overlapping sprites are not selected.
'on collisions' Is bit different in the sense that it is a trigger. Triggers can happen multiple times in a tick. It happens collision by collision. So it sets objects 1 by 1 selected.