This is a note for my future self. When encountering the following error in podman :

ERRO[0000] User-selected graph driver "btrfs" overwritten by graph driver "overlay" from database - delete libpod local files to resolve

Do as suggested to delete the libpod local files by doing

rm -rf .local/share/containers/libpod

This resolved the issue for me on my openSUSE Tumbleweed system.

Additional information

The default settings are stored if /etc/containers/storage.conf. Don’t screw around there as it might be suggested in e.g. podman#5114. That will not solve the issue for you but will only make it worse:

ERRO[0000] The storage 'driver' option must be set in /etc/containers/storage.conf, guarantee proper operation.

Instead really stick to the suggestion of podman and just delete the libpod local files as suggested.