With respect, I don't think this is the correct summary. What we were told in the original Elon/Ashok video, and AFAIK is still true,
Was that the key to everything is lots of training.
They didn't say the NN didn't need to be trained and just knew what to do. They said they didn't explicitly program it to recognize and label objects like stop signs, traffic lights, pedestrians etc. Nor did they program it how to drive - all that ability comes out of the extensive E2E training.
In the video, when it did make a mistake, they immediately said that it would be solved by more training of similar scenarios. More of the same. So talking about needing more training today is not a case of "back to overfitting"; it's perfectly consistent with the original explanation of v12.
I should add that I haven't seen Elon deny that overfitting can occur. He said that the first selectively released version needed more training outside of California and more training in bad weather. That's essentially an admission that it was overfit for California.