Draft for now because our signal handlers have the same "on_SIGNAL" name.

Having two of these blocks will generate 2 functions with the same "_on_body_entered" callback, is this the problem you're talking about with the "on_SIGNAL" name?

If so, doesn't this problem already exist in the "when this node collides with .." block?

This will be a hard fix because you need a way to make the signal callback unique but we code the function name withcode_template so in order for it to be unique it needs to be dynamically generated.

Having two of these blocks will generate 2 functions with the same "_on_body_entered" callback, is this the problem you're talking about with the "on_SIGNAL" name?

Yes, we need a better way. For example the Visual Shaders in Godot use suffixes (try creating a visual shader and then click "Show generated shader code". We'll need a solution like that.