Some containers dont get assigned IP addresses

Jan 05 11:48:29 test5 systemd[1]: Starting Network Service...
Jan 05 11:48:29 test5 systemd[1]: Failed to add a watch for /run/systemd/ask-password: inotify watch limit reached
Jan 05 11:48:29 test5 systemd-networkd[175]: Failed to connect to bus: No space left on device
Jan 05 11:48:29 test5 systemd-networkd[175]: Could not connect to bus: No space left on device
Jan 05 11:48:29 test5 systemd[1]: systemd-networkd.service: Main process exited, code=exited, status=1/FAILURE
Jan 05 11:48:29 test5 systemd[1]: systemd-networkd.service: Failed with result 'exit-code'.
Jan 05 11:48:29 test5 systemd[1]: Failed to start Network Service.

journactl is full of red text, all of which is either No space left on device or inotify watch limit reached. Looks like a lot of other services also failed.

Edit: here is df -h inside the container:

df -h
Filesystem                Size  Used Avail Use% Mounted on
default/containers/test5   52G  581M   51G   2% /
none                      492K  4.0K  488K   1% /dev
udev                       32G     0   32G   0% /dev/tty
tmpfs                     100K     0  100K   0% /dev/lxd
tmpfs                     100K     0  100K   0% /dev/.lxd-mounts
tmpfs                      32G     0   32G   0% /dev/shm
tmpfs                     6.3G  144K  6.3G   1% /run
tmpfs                     5.0M     0  5.0M   0% /run/lock
tmpfs                      32G     0   32G   0% /sys/fs/cgroup