The following patch seems to fix the problem. --- /tmp/lxc-default-with-nesting.org 2022-01-05 13:25:18.920809830 +0100 +++ lxc-default-with-nesting 2022-01-05 13:22:35.019939076 +0100 @@ -10,6 +10,7 @@ mount fstype=proc -> /var/cache/lxc/**, mount fstype=sysfs -> /var/cache/lxc/**, mount options=(rw,bind), + mount options=(rw,rbind), mount fstype=cgroup -> /sys/fs/cgroup/**, mount fstype=cgroup2 -> /sys/fs/cgroup/**, }