Public bug reported:

SRU Justification

Impact: LXD on Ubuntu runs on top of zfs by defaults. Users that make use of 
shiftfs for efficient id-shifting currently hit a bug where zfs is confused 
about the amount of space that is used in a dataset. For example, creating a 
file with 1GB of random data will increase the space used by the dataset by 
1GB. When the file is removed via rm the space is not freed for zfs. This leads 
to zfs running out of space pretty quickly.
This bug has been observed, described, and reproduced here 
https://discuss.linuxcontainers.org/t/trying-out-shiftfs/5155/9 . Stéphane 
Graber observed related issues.

Regression Potential: Limited to shiftfs. This patch has been tested on
various backends btrfs, dir, zfs to verify that it doesn't regress other
workloads. Shiftfs now also aligns more closely with overlayfs on file
deletion.

Test Case:
sudo snap install lxd
sudo snap set lxd shiftfs.enable=true
sudo systemctl restart snap.lxd.daemon
sudo lxd init # make sure to select zfs as backend
sudo lxc launch images:ubuntu/bionic b1
sudo lxc exec b1 -- dd if=/dev/urandom bs=1M count=1000 of=dummy.file
sudo zfs list default/containers/b1 # will show +1GB
sudo lxc exec b1 -- rm dummy.file
sudo zfs list default/containers/b1 # will show +1GB on a non-fixed kernel and 
-1GB on a fixed kernel

Target Kernels: All LTS kernels with shiftfs support.

** Affects: linux (Ubuntu)
     Importance: Undecided
     Assignee: Christian Brauner (cbrauner)
         Status: In Progress

** Changed in: linux (Ubuntu)
     Assignee: (unassigned) => Christian Brauner (cbrauner)

** Changed in: linux (Ubuntu)
       Status: New => In Progress

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https://bugs.launchpad.net/bugs/1841977

Title:
  shiftfs: drop entries from cache on unlink

Status in linux package in Ubuntu:
  In Progress

Bug description:
  SRU Justification

  Impact: LXD on Ubuntu runs on top of zfs by defaults. Users that make use of 
shiftfs for efficient id-shifting currently hit a bug where zfs is confused 
about the amount of space that is used in a dataset. For example, creating a 
file with 1GB of random data will increase the space used by the dataset by 
1GB. When the file is removed via rm the space is not freed for zfs. This leads 
to zfs running out of space pretty quickly.
  This bug has been observed, described, and reproduced here 
https://discuss.linuxcontainers.org/t/trying-out-shiftfs/5155/9 . Stéphane 
Graber observed related issues.

  Regression Potential: Limited to shiftfs. This patch has been tested
  on various backends btrfs, dir, zfs to verify that it doesn't regress
  other workloads. Shiftfs now also aligns more closely with overlayfs
  on file deletion.

  Test Case:
  sudo snap install lxd
  sudo snap set lxd shiftfs.enable=true
  sudo systemctl restart snap.lxd.daemon
  sudo lxd init # make sure to select zfs as backend
  sudo lxc launch images:ubuntu/bionic b1
  sudo lxc exec b1 -- dd if=/dev/urandom bs=1M count=1000 of=dummy.file
  sudo zfs list default/containers/b1 # will show +1GB
  sudo lxc exec b1 -- rm dummy.file
  sudo zfs list default/containers/b1 # will show +1GB on a non-fixed kernel 
and -1GB on a fixed kernel

  Target Kernels: All LTS kernels with shiftfs support.

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