First, you posted in the wrong sub-forum. Secondly, seems like you shared the wrong project :)
Anyway, there are multiple issues with your events. Event #4 on your screenshot will run on every tick, creating lots and lots of objects. Also, I believe when you press C, both events 1 and 10 will be triggered one after another. The first will set InDialog to true, and that's why the second will trigger also, cancelling the popup.
You need to change your code like this:
On C pressed
Player is overlapping Counter
Is InDialog : Set InDialog to false, destroy popup etc.
Else : Set InDialog to true, create popup menu etc.