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I am using XeLaTeX compiler on TeX Live version 2020 on overleaf.com.

The below MWE does not compile on TeX Live version 2020.

It works perfectly on TexLive version 2019.

\documentclass[11pt]{article}
\usepackage[english]{babel}
\usepackage{blindtext}
\usepackage{draftwatermark}
\SetWatermarkLightness{0.5}
\SetWatermarkColor[rgb]{1,0.75,0.75}
\SetWatermarkText{\mdseries PROOF}
\SetWatermarkFontSize{3.5cm}
\begin{document}
\blindtext[10]
\end{document}

The error I get in TeX Live 2020 is "Package keyval Error: 0.75 undefined".

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You might need the Package xcolor for colored Watermarks. You might also try DraftwatermarkOptions inside the document. More about DraftWatermarkOptions you can find here: "The draftwatermark package∗" by Sergio Callegari

\documentclass[11pt]{article}
\usepackage[english]{babel}
\usepackage{blindtext}
\usepackage{xcolor}
\usepackage{draftwatermark}
\SetWatermarkText{\mdseries PROOF}
\begin{document}
  \DraftwatermarkOptions{color={[RGB]{255,191,191}}}
  \DraftwatermarkOptions{fontsize=3.5cm}
  \blindtext[10]
\end{document}

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