Hi @rithic ,
Thank you so much for your interest in our products and for using our community.
From your PCAN window, we can see PCAN just send 1 CAN frame data to MIMXRT1176-EVKB board, then MIMXRT1176 project got OVERRUN status.

1: I suggest you check whether your flexcan_callback function responds and processes the received CAN frame data promptly and efficiently. I think it is very important.
2:I also suggest you to check whether there are other tasks or interrupts in your project that are consuming a large of CPU time, It may prevent the CAN receive interrupt from responding promptly. Please try to optimize the processing time.
3: I think you can do validation on your side, set MIMXRT1176 project only receive CAN frame data , do not send CAN frame data, then check whether the project still got overrun error.
Wish it helps you.
If you still have question about it, please kindly let me know.
Best Regards
mayliu