crio service fails to start with overlay2 storage driver

Issue

• We cannot get crio service to start with overlay2 storage driver.
• We are seeing these errors in /var/log/messages:

systemd[1]: Starting Open Container Initiative Daemon...
level=fatal msg="kernel does not support overlay fs: overlay: the backing xfs filesystem is formatted without d_type support, which leads to incorrect behavior. Reformat the filesystem with ftype=1 to enable d_type support. Running without d_type is not supported.: driver not supported"
 systemd[1]: crio.service: main process exited, code=exited, status=1/FAILURE
systemd[1]: Failed to start Open Container Initiative Daemon.
systemd[1]: Unit crio.service entered failed state.
systemd[1]: crio.service failed.