parse error: undefined node label 'pwm1' when building for 3.0.1 using nrf5340dk

I'm using 3.0.1 to compile an app for a nrf5340dk. It is building for 2.9.1, but errors on 3.0.1:

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devicetree error: ./nrf5340dk_nrf5340_cpuapp_291.overlay:51 (column 1): parse error: undefined node label 'pwm1'
CMake Error at /opt/nordic/ncs/v3.0.1/zephyr/cmake/modules/dts.cmake:305 (execute_process):
execute_process failed command indexes:
1: "Child return code: 1"
Call Stack (most recent call first):
/opt/nordic/ncs/v3.0.1/zephyr/cmake/modules/zephyr_default.cmake:133 (include)
/opt/nordic/ncs/v3.0.1/zephyr/share/zephyr-package/cmake/ZephyrConfig.cmake:66 (include)
/opt/nordic/ncs/v3.0.1/zephyr/share/zephyr-package/cmake/ZephyrConfig.cmake:92 (include_boilerplate)
CMakeLists.txt:5 (find_package)
-- Configuring incomplete, errors occurred!
CMake Error at cmake/modules/sysbuild_extensions.cmake:514 (message):
CMake configure failed for Zephyr project: display_hello_world
Location: /Users/*********/Projects/GitHub/*********/display_hello_world
Call Stack (most recent call first):
cmake/modules/sysbuild_images.cmake:43 (ExternalZephyrProject_Cmake)
cmake/modules/sysbuild_default.cmake:21 (include)
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Line 51 is the first line of:

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&pwm1 {
status = "okay";
pinctrl-0 = <&pwm1_default>;
pinctrl-1 = <&pwm1_sleep>;
pinctrl-names = "default", "sleep";
};
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I thought that was the node label definition.

Here is the complete overlay:

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/* Include the MIPI DBI definitions */
#include <zephyr/dt-bindings/mipi_dbi/mipi_dbi.h>
&pinctrl {
spi4_default: spi4_default {
group1 {
psels = <NRF_PSEL(SPIM_SCK, 0, 6)>,
<NRF_PSEL(SPIM_MOSI, 0, 25)>;
};
};
spi4_sleep: spi4_sleep {
group1 {
psels = <NRF_PSEL(SPIM_SCK, 0, 6)>,
<NRF_PSEL(SPIM_MOSI, 0, 25)>;
low-power-enable;
};
};
pwm1_default: pwm1_default {
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