After updated to more recent Ubuntu version(with cgroups v2), ubuntu 16.04 container is not working properly

In more recent Ubuntu version system(like 22.04), it switched to cgroups v2.

It seems that systemd does not work at all, and cloud init is never run. If cgroups v2 is disabled in kernel CMDLINE, 16.04 container works again.

While Ubuntu 18.04 containers can work under either v1 or v2.

Do you have any method to mitigate this kind of issue? Or the only solution is that we switch back to cgroups v1?

Please see Error: The image used by this instance requires a CGroupV1 host system when using clustering - #2 by tomp