Hello,
Due to device limitations it is not possible to tell the difference between NACK and receiver overflow (the same flag asserts in both cases). The driver attempts to detect NACK by checking the Tx shifter flag, but this is not a bullet-proof method, any delays in processing the Flexio interrupt can lead to the NACK condition not being recognized. In these cases the driver will consider that there was an overflow and not abort the transfer, because aborting a transfer while there is an active slave on the line can lead to the I2C bus getting stuck. It is safer to let the transfer finish, this will just produce a little delay.
Please check the driver documentation, these limitations are described in the "Important Notes" section.
Best regards,
Cristian