Where does the docker the overlay network first created, on manger or worker?

I have came across a question in docker associate exam test, I found two different answer of the same question on two different platform. So, I wanted to know what is really true about creating overlay network.

One platform mentioned option#1 as correct answer, Overlay network is first created on manger nodes then they are created on the worker nodes once a task is scheduled on the specific worker node.

Another platform mentioned option#3 as correct answer, overlay network are created on all cluster nodes when you create an overlay network.

I found details about ingress network on docker documentation that ingress network is getting created automatically when create a swarm or join any node to the swarm. But I could not find more details on docker website which can answer this question. Any suggestion or reference will be appreciated !