So I ended up forking a slightly newer version of engine and recompiling it. Although it’s kind of weird, at first steam overlay wasn’t appearing in editor and only in packaged games, but after recompiling my project recently it has begun to come up in editor again.
On bright side, attempting to launch PIE no longer crashes entire editor, but it does still give failed to start error. This is one and only error I get in message log.
Warning TravelFailure: PendingNetGameCreateFailure, Reason for Failure: ‘SteamSockets: binding to port 0 failed (0)’. Shutting down PIE.