Dev Container build fails with podman and HyperV

• VSCode Version: 1.106.0
• Local OS Version: Windows_NT x64 10.0.26100
• Remote OS Version: -
• Remote Extension/Connection Type: Dev Containers
• Logs:

[2025-11-13T22:33:05.227Z] Dev Containers 0.431.0 in VS Code 1.106.0 (ac4cbdf48759c7d8c3eb91ffe6bb04316e263c57).
[2025-11-13T22:33:05.227Z] Start: Resolving Remote
[2025-11-13T22:33:05.239Z] Setting up container for folder or workspace: c:\Users\marvin.weitz\Dev\projects\debian-dev-container
[2025-11-13T22:33:05.241Z] Start: Run: wsl -l -v
[2025-11-13T22:33:05.283Z] Stop (42 ms): Run: wsl -l -v
[2025-11-13T22:33:05.283Z] Could not connect to WSL.
[2025-11-13T22:33:05.284Z] Command failed: wsl -l -v
[2025-11-13T22:33:05.290Z] Start: Check Docker is running
[2025-11-13T22:33:05.290Z] Start: Run: podman version
[2025-11-13T22:33:05.471Z] Client:       Podman Engine
Version:      5.6.2
API Version:  5.6.2
Go Version:   go1.25.1
Git Commit:   9dd5e1ed33830612bc200d7a13db00af6ab865a4
Built:        Tue Sep 30 21:36:54 2025
OS/Arch:      windows/amd64

Server:       Podman Engine
Version:      5.6.2
API Version:  5.6.2
Go Version:   go1.24.7
Git Commit:   9dd5e1ed33830612bc200d7a13db00af6ab865a4
Built:        Tue Sep 30 02:00:00 2025
OS/Arch:      linux/amd64
[2025-11-13T22:33:05.475Z] Stop (185 ms): Run: podman version
[2025-11-13T22:33:05.475Z] Stop (185 ms): Check Docker is running
[2025-11-13T22:33:05.476Z] Start: Run: podman volume ls -q
[2025-11-13T22:33:05.626Z] Stop (150 ms): Run: podman volume ls -q
[2025-11-13T22:33:05.627Z] Start: Run: podman ps -q -a --filter label=vsch.local.folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --filter label=vsch.quality=stable
[2025-11-13T22:33:05.775Z] Stop (148 ms): Run: podman ps -q -a --filter label=vsch.local.folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --filter label=vsch.quality=stable
[2025-11-13T22:33:05.775Z] Start: Run: podman ps -q -a --filter label=devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --filter label=devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json
[2025-11-13T22:33:05.923Z] Stop (148 ms): Run: podman ps -q -a --filter label=devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --filter label=devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json
[2025-11-13T22:33:05.924Z] Start: Run: podman inspect --type container 2ad5bf80cca8
[2025-11-13T22:33:06.077Z] Stop (153 ms): Run: podman inspect --type container 2ad5bf80cca8
[2025-11-13T22:33:06.080Z] Running Dev Containers CLI:   up --user-data-folder c:\Users\marvin.weitz\AppData\Roaming\Code\User\globalStorage\ms-vscode-remote.remote-containers\data --docker-path podman --container-session-data-folder /tmp/devcontainers-673263ee-ffa9-4337-943a-f2b468a66b8f1763073184320 --workspace-folder c:\Users\marvin.weitz\Dev\projects\debian-dev-container --workspace-mount-consistency cached --gpu-availability detect --id-label devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --id-label devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --log-level debug --log-format json --config c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --default-user-env-probe loginInteractiveShell --remove-existing-container --mount type=volume,source=vscode,target=/vscode,external=true --skip-post-create --update-remote-user-uid-default on --mount-workspace-git-root --include-configuration --include-merged-configuration
[2025-11-13T22:33:06.095Z] ProxyResolver#loadSystemCertificates count (12ms)
[2025-11-13T22:33:06.097Z] ProxyResolver#loadSystemCertificates count filtered
[2025-11-13T22:33:06.098Z] Start: Run: C:\Users\marvin.weitz\AppData\Local\Programs\Microsoft VS Code\Code.exe c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js up --user-data-folder c:\Users\marvin.weitz\AppData\Roaming\Code\User\globalStorage\ms-vscode-remote.remote-containers\data --docker-path podman --container-session-data-folder /tmp/devcontainers-673263ee-ffa9-4337-943a-f2b468a66b8f1763073184320 --workspace-folder c:\Users\marvin.weitz\Dev\projects\debian-dev-container --workspace-mount-consistency cached --gpu-availability detect --id-label devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --id-label devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --log-level debug --log-format json --config c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --default-user-env-probe loginInteractiveShell --remove-existing-container --mount type=volume,source=vscode,target=/vscode,external=true --skip-post-create --update-remote-user-uid-default on --mount-workspace-git-root --include-configuration --include-merged-configuration
[2025-11-13T22:33:06.296Z] @devcontainers/cli 0.80.1. Node.js v22.20.0. win32 10.0.26100 x64.
[2025-11-13T22:33:06.296Z] Start: Run: podman buildx version
[2025-11-13T22:33:06.437Z] Stop (141 ms): Run: podman buildx version
[2025-11-13T22:33:06.438Z] buildah 1.41.5
[2025-11-13T22:33:06.438Z] 
[2025-11-13T22:33:06.438Z] Start: Run: podman -v
[2025-11-13T22:33:06.560Z] Stop (122 ms): Run: podman -v
[2025-11-13T22:33:06.560Z] Start: Resolving Remote
[2025-11-13T22:33:06.561Z] Start: Run: git rev-parse --show-cdup
[2025-11-13T22:33:06.569Z] findLocalWindowsExecutable: Exectuable 'git' not found on PATH 'C:\WINDOWS\system32;C:\WINDOWS;C:\WINDOWS\System32\Wbem;C:\WINDOWS\System32\WindowsPowerShell\v1.0\;C:\WINDOWS\System32\OpenSSH\;C:\Program Files (x86)\Automox\;C:\Program Files\AxisSecurity\;C:\Program Files\nodejs\;C:\Program Files\RedHat\Podman\;C:\Program Files\Docker\Docker\resources\bin;C:\Users\marvin.weitz\AppData\Roaming\containerd;C:\Program Files\containerd;C:\Users\marvin.weitz\AppData\Local\Microsoft\WindowsApps'.
[2025-11-13T22:33:06.572Z] Start: Run: podman ps -q -a --filter label=devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --filter label=devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json
[2025-11-13T22:33:06.721Z] Stop (149 ms): Run: podman ps -q -a --filter label=devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --filter label=devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json
[2025-11-13T22:33:06.722Z] Start: Run: podman inspect --type container 2ad5bf80cca8
[2025-11-13T22:33:06.910Z] Stop (188 ms): Run: podman inspect --type container 2ad5bf80cca8
[2025-11-13T22:33:06.911Z] Start: Removing Existing Container
[2025-11-13T22:33:06.911Z] Start: Run: podman rm -f 2ad5bf80cca8e28929100b00e980eecae1d3abb9d2287e9606fcd1b5f859a6ca
[2025-11-13T22:33:07.133Z] Stop (222 ms): Run: podman rm -f 2ad5bf80cca8e28929100b00e980eecae1d3abb9d2287e9606fcd1b5f859a6ca
[2025-11-13T22:33:07.133Z] Stop (222 ms): Removing Existing Container
[2025-11-13T22:33:07.134Z] Start: Run: podman inspect --type image debian:latest
[2025-11-13T22:33:07.323Z] Stop (189 ms): Run: podman inspect --type image debian:latest
[2025-11-13T22:33:07.327Z] Start: Run: podman events --format json --filter event=start
[2025-11-13T22:33:07.339Z] Start: Starting container
[2025-11-13T22:33:07.339Z] Start: Run: podman run --sig-proxy=false -a STDOUT -a STDERR --mount type=bind,source=c:\Users\marvin.weitz\Dev\projects\debian-dev-container,target=/workspaces/debian-dev-container,consistency=cached --mount type=volume,src=vscode,dst=/vscode -l devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container -l devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --entrypoint /bin/sh -l devcontainer.metadata=[] debian:latest -c echo Container started
[2025-11-13T22:33:07.496Z] 
[2025-11-13T22:33:07.566Z] Error: statfs /mnt/c/Users/marvin.weitz/Dev/projects/debian-dev-container: input
/output error
[2025-11-13T22:33:07.660Z] Stop (321 ms): Run: podman run --sig-proxy=false -a STDOUT -a STDERR --mount type=bind,source=c:\Users\marvin.weitz\Dev\projects\debian-dev-container,target=/workspaces/debian-dev-container,consistency=cached --mount type=volume,src=vscode,dst=/vscode -l devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container -l devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --entrypoint /bin/sh -l devcontainer.metadata=[] debian:latest -c echo Container started
[2025-11-13T22:33:07.661Z] Start: Run: podman ps -q -a --filter label=devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --filter label=devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json
[2025-11-13T22:33:07.674Z] Stop (347 ms): Run: podman events --format json --filter event=start
[2025-11-13T22:33:07.929Z] Stop (268 ms): Run: podman ps -q -a --filter label=devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --filter label=devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json
[2025-11-13T22:33:07.933Z] Error: Command failed: podman run --sig-proxy=false -a STDOUT -a STDERR --mount type=bind,source=c:\Users\marvin.weitz\Dev\projects\debian-dev-container,target=/workspaces/debian-dev-container,consistency=cached --mount type=volume,src=vscode,dst=/vscode -l devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container -l devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --entrypoint /bin/sh -l devcontainer.metadata=[] debian:latest -c echo Container started
[2025-11-13T22:33:07.933Z] trap "exit 0" 15
[2025-11-13T22:33:07.933Z] exec "$@"
[2025-11-13T22:33:07.934Z] while sleep 1 & wait $!; do :; done -
[2025-11-13T22:33:07.934Z]     at w6 (c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js:467:1253)
[2025-11-13T22:33:07.934Z]     at ax (c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js:467:997)
[2025-11-13T22:33:07.934Z]     at process.processTicksAndRejections (node:internal/process/task_queues:105:5)
[2025-11-13T22:33:07.935Z]     at async Y6 (c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js:484:3842)
[2025-11-13T22:33:07.935Z]     at async BC (c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js:484:4957)
[2025-11-13T22:33:07.936Z]     at async p7 (c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js:665:202)
[2025-11-13T22:33:07.936Z]     at async d7 (c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js:664:14804)
[2025-11-13T22:33:07.936Z]     at async c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js:484:1188
[2025-11-13T22:33:07.946Z] Stop (1848 ms): Run: C:\Users\marvin.weitz\AppData\Local\Programs\Microsoft VS Code\Code.exe c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js up --user-data-folder c:\Users\marvin.weitz\AppData\Roaming\Code\User\globalStorage\ms-vscode-remote.remote-containers\data --docker-path podman --container-session-data-folder /tmp/devcontainers-673263ee-ffa9-4337-943a-f2b468a66b8f1763073184320 --workspace-folder c:\Users\marvin.weitz\Dev\projects\debian-dev-container --workspace-mount-consistency cached --gpu-availability detect --id-label devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --id-label devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --log-level debug --log-format json --config c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --default-user-env-probe loginInteractiveShell --remove-existing-container --mount type=volume,source=vscode,target=/vscode,external=true --skip-post-create --update-remote-user-uid-default on --mount-workspace-git-root --include-configuration --include-merged-configuration
[2025-11-13T22:33:07.947Z] Exit code 1
[2025-11-13T22:33:07.952Z] Command failed: C:\Users\marvin.weitz\AppData\Local\Programs\Microsoft VS Code\Code.exe c:\Users\marvin.weitz\.vscode\extensions\ms-vscode-remote.remote-containers-0.431.0\dist\spec-node\devContainersSpecCLI.js up --user-data-folder c:\Users\marvin.weitz\AppData\Roaming\Code\User\globalStorage\ms-vscode-remote.remote-containers\data --docker-path podman --container-session-data-folder /tmp/devcontainers-673263ee-ffa9-4337-943a-f2b468a66b8f1763073184320 --workspace-folder c:\Users\marvin.weitz\Dev\projects\debian-dev-container --workspace-mount-consistency cached --gpu-availability detect --id-label devcontainer.local_folder=c:\Users\marvin.weitz\Dev\projects\debian-dev-container --id-label devcontainer.config_file=c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --log-level debug --log-format json --config c:\Users\marvin.weitz\Dev\projects\debian-dev-container\.devcontainer\devcontainer.json --default-user-env-probe loginInteractiveShell --remove-existing-container --mount type=volume,source=vscode,target=/vscode,external=true --skip-post-create --update-remote-user-uid-default on --mount-workspace-git-root --include-configuration --include-merged-configuration
[2025-11-13T22:33:07.952Z] Exit code 1

Steps to Reproduce:

1. Install podman and Hyper-V
2. Create a podman machine in Hyper-V via podman machine init --now
3. Create a basic devcontainer.json

{
    "image": "debian:latest"
}

4. Set hte dev.containers.dockerPath setting to podman
5. Run the Dev Containers: Rebuild and Reopne in Container command -> Build fails with log

Does this issue occur when you try this locally?: Yes
Does this issue occur when you try this locally and all extensions are disabled?: Yes

Some further info I found:

The problem seems to occur after
[2025-11-13T22:33:07.327Z] Start: Run: podman events --format json --filter event=start
This can be seen via
podman machine ssh "ls /mnt/c"

WIth a freshly started machine (podman machine stop, podman machine start) I get an output

$ podman machine ssh "ls -la /mnt/c"     
total 0

and after running podman events --format json --filter event=start and cancelling it:

$ podman machine ssh "ls -la /mnt/c"     
ls: cannot access '/mnt/c': Input/output error

Any help is appreciated!