You did not overcharge your battery, that is impossible to do as the phones charging circuit prevents that from happening. Apple even recommends charging it overnight.
Some users with 95% battery health updated their ios devices, and it went back to 100%.
No, that didn't happen, battery health is a one way street, it can only go down.
Batteries degrade over time with usage due to chemical aging.
You can expect about a 1% drop per 50 charging cycles (25 charging cycles for IPhone 14 and older) with average use on an iPhone. This is an approximation, that is why it may be plus or minus a few percent on a month to month basis.
Apple recommends replacing it when it reaches 80%. To check your battery health, go to Settings > Battery > Battery Health.
iPhone Battery Replacement.
iPhone Battery Replacement - Apple Support
About Lithium Ion Batteries
iPhone battery and performance - Apple Support (IN)
Here are some tips on maximizing battery life.
Batteries - Maximizing Performance - Apple