Privileged containers have a much stricter apparmor policy applied than 
unprivileged containers.
That's because unprivileged containers primarily rely on the user namespace to 
prevent breakout and taking over of the host whereas privileged containers rely 
entirely on apparmor.

As apparmor isn't particularly good at dealing with mounts, especially
with mount namespaces, there is no safe way for us to allow this
operation in privileged containers.

As you point out above, we've recently started using a systemd generator
to dynamically generate unit overrides based on the environment, letting
us disable specific features that interfere with container security.


This is used in all of the community images, so in this case you could try it 
by using "images:ubuntu/jammy" instead of "ubuntu-daily:jammy". We've been 
considering getting the generator into the lxd-agent-loader package which is 
included in all Ubuntu images though so far we've found it to be too volatile 
for that (we were updating it up to twice a week for a while...).

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https://bugs.launchpad.net/bugs/1950787

Title:
  systemd-sysusers cannot mount /dev in privileged containers (to pass
  credentials)

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