Unable to start Docker Container in Centos LXC Container

I’m trying to make Docker container up and running inside a Centos7 LXC Container.
But I’m not able to.
Error response from daemon: error creating overlay mount to /var/lib/docker/overlay2/e195773745d2349277d1a36aef205aeade66a66650d92b28a548f2f76b71956f/merged: invalid argument

Docker is running with storage-driver as overlay2.

You will need to run the container as privileged.
On Ubuntu it will work, it has do with the kernel being used. Ubuntu has a change to the overlayfs module.

I am running the LXC container with the privileged mode.
I can see,
security.privileged: true (in configuration file)