Confirmed working on all layouts thus far! Thanks ramones, you just saved me hours of work! This way even fixes the layout disappearing at the beginning of layout 3.
So why does "restore time scale" work a lot better than "set time scale to 1" within the layout, but "set time scale to 1" works in the hud? it seems to me that "set time scale" and "restore time scale" are the same thing because the original time scale was 1 to begin with until I manually set it to 0. Grrr. Could this be a Construct 2 glitch or is it like a ghost in the machine that produces the continuing fade out error if I use "set time scale"?
Either way, thanks. Hopefully, I won't need anymore help like this for a while until I start implementing my more complicated game-type elements.