Ok, I rebuilt the kernel following the instructions here:
http://wiki.espressobin.net/tiki-index.php?page=Build+From+Source+-+Kernel#Kernel_version_4.4.52
and enabled overlay via
CONFIG_OVERLAY_FS=y
and check config says, overlay is setup. But now I’m getting cgroup errors when the daemon starts.
I see there is a lot of red (missing) kernel features. This is going to take some work. And this is my first time building the kernel.