Sorry I can't address your main issue as I rarely use Overdrive ( I have it but don't get library books often)
However, you can eliminate the update conflict by turning off automatic updating for the specific app in the Play Store. The only app that gave me this conflict was Pandora. Even though it was a B&N native app it was showing as installed in Play Store. When I turned off automatic updating in the app info screen it stopped the conflicting update.
Hope this helps!
Thanks! I disabled the update function on GoPS. Would still like to know if they fix the GoPS app...maybe in a few months I'll try it again.