Trying to debug blending images over video led to this observation:
ffmpeg -i https://lh3.googleusercontent.com/vt1VzlKCpjJjxRGBd3oAVgOHau22m2257fDBaW3KfHsNbhOcw1--OY7oISUM93Zp0SjwCSdlHP5PXXbFHdaflxTJAJ_B32MSrUH4AerS_0u6gv3X -i https://lh3.googleusercontent.com/MMzUU7GklKAqtdcGN4k2UVF22Wc2l35A2NDEeB4GhgM7eU06nKSQgitHAoWttj605G1yjoOEODt-dMKNPoWUdCmtFxe-u-qH5H228E9DxpoZsZk -filter_complex "[0:v] format=rgba [bg]; [1:v] format=rgba [fg]; [bg][fg] blend=all_mode='overlay':all_opacity=1, format=rgba" out.png
results in (with odd fringes):
desired image is: