Oil overfilled 2004 Subaru Forester; check engine light on; oil leak stains on driveway

Check engine light on 2x in 3 wks. Dealership svc dpt is telling me it's the relay system. Oil stains on driveway; checking oil shows it is way overfilled. Dealership now telling me it's a power steering fluid leak. It was topped off 1-2 oz. Smell of stains is definitely oil. Svc Mgr checked oil; should have clearly seen it was overfilled but just said it was "fine." What kind of damage could car have? I'm told by others possibility of a blown engine. Svc Mgr at Subaru dealership advised me to continue to drive car for at least 2 more days til relay parts come in. I'm very concerned I'm being lied to & am risking a blown engine. Need guidance please