The overhang on the gable end should have been open to the attic.Then you could have installed a vented soffit and ran the j channel for the siding up to it.Ventilating the attic in place of sealing it.Hard to tell from the angle of the pics what you have done.The overhang should never be insulated.It should have vents to work with a ridge vent or such to ventilate the attic space.
Nealf course your correct.I explained it badly.We always run vented soffit on the eaves and finish the fascia and soffits on the gable ends to match.Still no reason to insualate an overhang on a gable.This area is seldom open to the attic in any meaningfull way any you want your venting to go from the soffet to the ridge to move heat away from the outside wall, open to the attic and vented would short cercuit the system like gable vents do.
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