Mike, I think you may be missing the point that the nature of the overlayfs bug is such that nothing which wants to use inotify (and there are several bits of software in the live CD that do nowadays, because inotify is a *far superior API* to the alternatives) has any way of knowing that it isn't working correctly.
This is a bug in the overlayfs driver, plain and simple.
Mike, I think you may be missing the point that the nature of the overlayfs bug is such that nothing which wants to use inotify (and there are several bits of software in the live CD that do nowadays, because inotify is a *far superior API* to the alternatives) has any way of knowing that it isn't working correctly.
This is a bug in the overlayfs driver, plain and simple.