Does the instruction “molto legato” imply overlapping notes or make the notes connected as much as possible?
Both. To create a legato sound, you connect the notes, obviously. How do you get a MOLTO legato sound? You make the notes sound SUPER connected by overlapping them each slightly into the next note. It must be done tastefully, of course, to avoid an overly muddy sound. I learned about this overlapping technique from two of my previous piano professors from different universities. I believe it is a fairly common practice among well trained, advanced classical pianists. You might also take your use of pedal into consideration when creating a molto legato sound. Perhaps you could use a little bit heavier pedal in that section, if you find it helps.