#1 and #4 are equally good.
"Overwhelmed", by itself, acts as an adjective to modify "the team".
"Being overwhelmed" is a clause that can act as an adjective, noun, or adverb.
"The team, being overwhelmed, requested more time" (adjective)
"The team resisted being overwhelmed, but it finally gave up" (noun)
I found it very hard to construct a sentence in which "being overwhelmed" is adverbial. GPT and I had to work together on this challenge for about ten minutes. I would try, then GPT would tell me why I was wrong. Then GPT would try and I would say why GPT was wrong. We went through about 5 iterations of this and finally found a sentence in which, we both agreed, "being overwhelmed" is adverbial. Here is the result of our collaboration:
"The room had a pink picture on the wall. We painted the room a light green, but then pink being overwhelmed was no longer a pretty color in that room."