Your regions cannot overlap, so if you’ve put one in as a background then you will have regions that are on top of eachother.
You can set a layout background image in the Options menu from the layout designer. You then draw regions on top of that.
Error 11 from the zip module also suggests you have a permissions problem in your Xibo library on the CMS. You need ot ensure that the webserver can write to the whole directory, and any sub directories (particularly the temp one)