I'm very clear with my kids that there is no valid evidence (literally none) for any kind of supernatural being and that all religion is frankly very, very weird, is a human construct and follows no logic. They go to a C of E school so they are exposed to some attempts at indoctrination; I respectfully discuss it with them, or rather just make occasional comments to encourage them to think.
I am clear with them that we are tolerant of all beliefs as long as nobody is being harmed. They have religious friends and that's fine of course.
For me, all religion is just bizarre: billions of people literally believing in fairy stories despite there being zero evidence in favour of them - and failing to see that other groups believe similar (but different) things and not joining the dots that they different groups/beliefs all have exactly the same amount of evidence (none).
It's about time all religion was thrown in the bin and consigned to history. We do ourselves a great disservice in believing in this stuff, and promoting it to kids borders on abuse if you ask me. We are moving in the right direction but nowhere near fast enough.