As I said in the description, it's any possible square, including overlapping ones, so the 3x2 rectangle has 8 total squares with 6 1x1s and 2 2x2s. Sorry for the late response, I haven't been very active recently.

Are these overlapping or distinct squares?
Because 3x2 contains 2 overlapping 2x2 squares and 6 distinct 1x1 squares

are these overlapping squares or distinct?
because 3*2 contains 2 overlapping squares of area 2x2. and it contains 6 distinct squares of 1x1.