Thanks for your help.
I transferred overlay on USB using: https://openwrt.org/docs/guide-user/additional-software/extroot_configuration
It all went well, except I end up with two entry. Running 21.02. Is this normal, would I have problems going forward?
What you see is normal. Basically it is mounting /dev/sda as /overlay, and then it is saying that the overlay filesystem (overlays) is mounted to /. This is not a double overlay, just a visual quirk of how to present the mount information.
@psherman Thanks a lot!
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