What happens if you overfill your engine oil in a 2004 vw beetle and How can I clear it out of the system?

Start by draining some of the oil out. I f you don't pan gasket or main bearing seals may start leaking due to high oil level.

from cliff:

According to something recent, I think at the VW dealer, overfilling can damage the catalitic converter. According to my old-school-Dad, excess oil would be blown out the "breather tube"; better a quart low than a quart high (he would tell me.) Those were the days before the California Cat Converters existed, yet I know not if such a tube still exists, where it discharges, or why they would permit the expensive cat converter to be damaged by overfilling.

Tangent; leaky fuel injector, and other things, can cause gas (or antifreeze) into the oil supply, raising the level while also reducing lubication due to thinned out oil.