I'm trying to remember if we had to bump any of the sysctls to actually
reach 1024 containers, I don't think any of the usual suspects would be
in play until you reach 2000+ Alpine containers though.

If you do run out of some kernel resources, you can try applying the following 
sysctls to get you past that:
net.ipv6.neigh.default.gc_thresh3 = 8192
net.ipv6.neigh.default.gc_thresh2 = 4096
net.ipv6.neigh.default.gc_thresh1 = 1024
net.ipv6.route.gc_thresh = 8192
kernel.pty.max = 65536
kernel.pid_max = 2097152
fs.inotify.max_queued_events = 1048576
fs.inotify.max_user_instances = 8192
fs.inotify.max_user_watches = 524288

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https://bugs.launchpad.net/bugs/1567557

Title:
  Performance degradation of "zfs clone" when under load

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