I could track down what is causing this behaviour.
The problem is that in your NewGameMode you use your NewBlueprint as Pawn. This pawn derives from Spectator Pawn and Collision is set to only Block WorldStatic objects. The NewBlueprint1 object which is surrounding your sofa has set its collision object type to WorldDynamic. So the pawn won’t overlap with the NewBlueprint1 and so no text toggle!
To make this work either change the Collision object type of NewBlueprint1’s CollisionComponent to WorldStatic, or make your NewBlueprint (Pawn) Overlap or Block WorldDynamic objects.
By the way, I suggest to choose better names for your Blueprints, since it was hard to find out which blueprint is of what type and what it does (e.g. MyNewPawn instead of NewBlueprint).
I hope this will resolve your problem.