I noticed this when testing #936490-79: Update module should verify downloaded tarballs and propagate errors correctly. If you're running the update manager inside the overlay, and for any reason it needs to throw an exception (e.g. an invalid tarball), you end up on a complete UI dead end. See attached patch.
To reproduce, apply http://drupal.org/files/issues/drupal_updater.patch from the other issue and then try to install a new module from inside the overlay and use http://ftp.drupal.org/files/projects/entity-7.x-1.0-beta5.tar.gz as the URL to install from. You should see something like this:

| Comment | File | Size | Author |
|---|---|---|---|
| #1 | 1012822-2.update-manager-uncaught-exception-deadend.patch | 1.08 KB | dww |
| #1 | 1012822-2.update-manager-uncaught-exception-deadend.png | 80.65 KB | dww |
| update-manager-overlay-exception-deadend.png | 62.57 KB | dww |
Comments
Comment #1
dwwUpon closer inspection, this isn't just the overlay's fault. It happens outside of the overlay, too. The problem are uncaught exceptions. This is better.
Now, for example, you see something more like this on the failure case explained above:
Comment #2
aspilicious commentedGood to go :).
Tested it and code looks good.
Comment #3
webchickCommitted to HEAD. Thanks!