Old Container and CGroupv2
Since Proxmox VE 7.0, the default is a pure cgroupv2 environment. Previously a "hybrid" setup was used, where resource control was mainly done in cgroupv1 with an additional cgroupv2 controller which could take over some subsystems via the cgroup_no_v1 kernel command line parameter. (See the kernel parameter documentation for details.)
cgroupv2 support by the container’s OS is needed to run in a pure cgroupv2 environment. Containers running systemd version 231 (released in 2016) or newer support cgroupv2, as do containers that do not use systemd as init system in the first place (e.g., Alpine Linux or Devuan).
CentOS 7 and Ubuntu 16.10 are two prominent Linux distributions releases, which have a systemd version that is too old to run in a cgroupv2 environment, for details and possible fixes see:
https://pve.proxmox.com/pve-docs/chapter-pct.html#pct_cgroup_compat
https://pve.proxmox.com/wiki/Upgrade_from_6.x_to_7.0