That's the part I was missing.
I needed to clone the repo and build from the cloned directory.

install image bone-debian-8.1-lxqt-4gb-armhf-2015-07-12-4gb.img

sudo apt-get update
sudo apt-get upgrade

cd /opt/scripts/tools
git pull
sudo ./update_kernel.sh --lts --bone-channel

cd ~
git clone https://github.com/RobertCNelson/bb.org-overlays.git
cd bb.org-overlays
./dtc-overlay.sh
./install.sh

sudo nano /boot/uEnv.txt
dtb=am335x-boneblack-overlay.dtb

And the display gets detected and it works as expected.
Thanks!

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