Moving this to On_QA for verification.
This issue is not seen with glusterfs build 3.7.9-12.el7rhgs.x86_64. Here are the steps that were performed, 1.created a distributed replica volume and FUSE mounted it. 2.Brought down one brick and created dir and files. 3.Made that brick up and from mount point issued lookup on that dir. After issuing lookup on that dir, wrong holes and overlaps count messages were not seen in logs. Hence, moving the state of bug to Verified.
Thanks Prasad. I am closing this BZ as per comment#5.