Even with the "Pause spoken audio" off, Waze continue to pause the Apple Podcast app.
Worst, the pause mechanism is not great because it makes me miss a few seconds of podcast at each alert forcing me to rewind.

I created a voice with small airplane chimes to get alerts and not missing a turn without having full spoken directions (especially for commute where I know the directions).
The chimes are so small and unintrusive that I prefer to have them played over my music/podcast.

Being able to NOT pause the podcast is therefore important.

Said otherwise: If you give the option in the settings, make that option work ;-)