Docker/Portainer in privileged LXC not able to run privileged container?

[pixelwave]

Hi,

I have a proxmox server with two fresh Debian 11 LXC container:




103/docker2 -> is an unprivileged LXC container
104/docker3 -> is a privileged LXC container

Now the problem when I try to run a test container in portainer (e.g, ubuntu with console / TTY) and set the "Privileged mode" under "runtime and resources" the container starts in the 103/docker2 but in the 104/docker3 it throws an error "Request failed with status code 500"?

Both docker and portainer installs done following the official resources, run as root without errors:
Docker Install
https://docs.docker.com/engine/install/debian/#install-using-the-repository

Portainer Install
https://docs.portainer.io/start/install/server/docker/linux

Ideally I need a privileged LXC container because I want to bind NFS shares to the containers in portainer ...