Mike got it exactly right. Too much oil bad. Bubbles bad.
The oil pressure gauge is there to warn you of problems. If the pressure is too low, then the engine isn't getting the lubrication it needs. Some modern engines also need good oil pressure to activate certain parts (cam phasers etc.). Low pressure can be cause by things like low oil, incorrect oil, blocked oil passages, bad oil pump, worn out engine etc.
The gauge measures oil pressure not level. Those bubbles are from air being mixed into the oil by the crankshaft. Yes it can cause damage overfilling for a few reasons; among them: you’re introducing bubbles into the oil flowing through the engine reducing its ability to keep a barrier between the metallic moving parts. Another problem is it’s overfilled enough it’s going to interfere with the space the piston is retreating into on the down stroke.
Drain the extra quart.