I can confirm that adding systemd.legacy_systemd_cgroup_controller
in GRUB_CMDLINE_LINUX_DEFAULT inside /etc/default/grub effectively works
around the issue.

systemd's Cgroup is infact mounted under cgroup hierarchy now:

$ mount | grep systemd
cgroup on /sys/fs/cgroup/systemd type cgroup
(rw,nosuid,nodev,noexec,relatime,xattr,release_agent=/lib/systemd/systemd-cgroups-agent,name=systemd)

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