have it removed (and rebuilt) or cut down even w/the cabinets. if you are doing more than 10", you will need proper support for the overhang.

Remove the wall entirely, and have a custom match made for a side skin on the cabinetry. Or just cut it down, get the counter on it, and don't obsess. Any fabricator will account for the depth of the wall (front) beyond the cabinet, a slight jog..... In no case will the counter hang over 3.5 on the cabinetry preceding the knee wall.

The "fix" depends the flooring beneath the wall. If all is changing.....no big deal.If not? Then you have your answer.

The easy way to resolve this without removing anything, just add a row of tile same thickness as the countertop and wrap it around the wall. Here is an image as an example, seen it done in these situations many of times.

Gn builders, you need to read his POST again. He is planning a wood counter top at same level as the rest of the top. Not tiling: )

My bad...Thanks, Jan, not awake yet -)

I was hoping not to do anything to the wall aside from trimming down the top obviously as the current end of the wall is also where the carpet meets the tile and I don’t want to introduce having to mess with the carpeting. The ideal situation is having that extra overhang and then dressing it up so it doesn’t look bad. If it comes down to having to alter the wall itself I’ll likely just keep the bar part higher like it is currently.

Just cut it down, and do the entire drywall portion in same wood as top?. We really can't help from one picture. I wouldn't recommend stools and an overhang on carpet.........: ) Perhaps you have some left over tile. .

Depending on the type of wood counters and the orientation of the grain, you may not need additional support even if you cantilever a foot or so. I'd determine this before deciding on whether or not to remove the wall.

If you are not going to have seating there then just the usual overhang past the wall will be fine if you want seating then you will need to 14-15”past the back of the cabinets for overhang. Butcher block can often be self supporting but I would do steel supports for peace of mind.

I think I might have been unclear in my first post. In fact, I definitely was. The actual bar top will be supported. The thing I’m having an issue with is the overhang on the side of the cabinets because the countertop has to extend far enough to cover that wall, it will result in a 3.5” inch overhang on the side of the cabinets, which I suspect will look bad, so I’m really wondering if there’s something I can do to make that extra overhang on the side of the cabinets look better. Sorry for not being more clear initially.

I'm no pro, but 3.5" doesn't seem that big to me and I'm not envisioning why it would look so bad. I'd probably just leave it like that initially and see how it looks. Or just put some decorative corbels under it if you feel you need something to help mask the overhang.

I've got a 2" overhang in my kitchen and I'm pushing it. My tops are only an inch thick. An 1 1/2" top with a 3 1/2" overhang isn't going to look good.