Overlay2 preventing boot?

Then this can’t be the cause for the problem. You should investigate why the filesystem is mounted in read-only mode. This is not caused by Overlay2, but Overlay2 suffers from this situation and can’t work properly.

The overlay network is a swarm cluster scoped network that spans across one or more swarm cluster nodes. Not related to your problem. Overlay2, the one shown in your error message, is a storage driver.