I've never seen oil expand with heat, maybe it does, but I have personally changed the oil in thousands of cars and never seen it. The reason to not overfill: "When too much oil is added,
the level in the oil pan becomes too high. That allows a fast-moving lobed rod called the crankshaft to come into contact with the oil and essentially aerate it. The result is a foamy, frothy substance that cannot properly lubricate the engine." From jdpower.com
The previous comment about 5/32, that is an odd amount, or rather a very precise amount. 8/32 would be a quarter of a quart or a quarter of the range on your
dipstick measurement surface, approximately. The measuring of an overfill is hard to do because there is no measure surface above the full line, so how are you getting such a precise fraction? I've used my thumb to hold the stick above it's insertion point to bring the measurement surface up to where the overfill is, but even that is an approximation.