I mounted the zfs dataset and removed the ‘keystore’ directory. Now i get this,
$ incus start downloader1
Error: Failed to handle idmapped storage: invalid argument - Failed to change ACLs on /var/lib/incus/storage-pools/lxd/containers/downloader1/rootfs/var/log/journal
Try `incus info --show-log downloader1` for more info
The permissions of the path is,
# ls -lad /var/log/journal/
drwxr-sr-x+ 4 root systemd-journal 4 Mar 14 2020 /var/log/journal/
I deleted this folder as well and now the container is up.