Create a new LXC Container In Proxmox VE create a unprivileged LXC container with fuse=1,keyctl=1,mknod=1,nesting=1 (I’m not sure if all are needed). In this case I use a Ubuntu 18.04 container. Installation of fuse-overlayfs fuse-overlayfs is a similar to overlayfs runs in userspace and can be used without root permissions1. Unlike overlayfs, fuse-overlayfs can be also used when the backing filesystem is ZFS, like on Proxmox VE. Then inside the container, install a static version of fuse-overlayfs.