Is distance traveled still counted?

In Pokemon Go is the distance traveled still measured and counted towards eggs whilst you are in a battle or have a prompt on screen?

For example. With the new "I'm a passenger" prompt coming up randomly whilst I'm walking for to gps wander.

It will count, but you will have to be going under 20 kmh or 12 mph.

Yes, all movement should count towards egg hatching that isn't too fast. That being said, a number of people did some experiments and seemed to find that the major reason for discrepancies between recorded distance and how far one actually walked was that if the game was loading information from the server, the distance was not counted. MEaning that anytime the little "loading" symbol appears in the corner, chances are good that your movement is not being counted towards your incubating eggs. Whenever the person testing this stopped walking whenever they saw the "loading" symbol and waited for the symbol to disappear before continuing to walk, they found that the distance applied to the egg was the same as the distance they walked. Hope this helps.