SWLOR replaces the default Neverwinter Nights rest finish with a custom Rest status effect. When you start resting (after the server accepts the rest attempt):
Rest ticks run on the server’s status-effect heartbeat (not on the vanilla NWN “rest completed” timer).
You cannot rest while you (or a party member within range) are in combat, while you are personally in combat, or while an enemy is nearby (roughly within 20 meters). The server returns a clear error string in those cases.
The server sets an internal busy state for focused actions. While busy, some systems refuse new actions (for example many item activations) with “You are busy.” Examples that set busy include:
Busy is cleared when those actions finish (for example rest ends, container turn-in closes) and is wiped on character login or death so stuck states do not persist.
Abandoning a quest from the Quests UI also checks busy; finish resting or other busy interactions first.
Related: Death and respawn, Quests, Status effects, and Character creation (ability modifiers that affect rest recovery).