Directory and file ownership nobody:nogroup - after docker copy into sysbox enabled container

Am seeing an issue with directory and file ownership after using docker cp to copy a directory inside a sysbox enabled container.

Using the latest version of all system components.

os=Ubuntu 22.04.3 LTS, kernel=6.2.0-37-generic, docker=24.0.7, sysbox=0.6.2 EE (Tue Nov 14 23:13:01 UTC 2023)
os=Ubuntu 22.04.3 LTS, kernel=6.2.0-37-generic, docker=24.0.7, sysbox=0.6.2 CE (Mon Jun 12 03:49:19 UTC 2023)

HWE kernel installed using the following package.

linux-image-generic-hwe-22.04/jammy-updates

The shiftfs module looks to be available.

lsmod | grep shiftfs
shiftfs                36864  0

Start test container.

docker run --runtime sysbox-runc -it --name z1 ubuntu:22.04 bash

Run following commands outside test container.

mkdir z2
echo "hi there" > z2/hello
docker cp z2 z1:/
docker exec z1 ls -l /z2

This produces the following.
-rw-r--r-- 1 nobody nogroup 9 Nov 30 07:15 hello

We were expecting the following.
-rw-r--r-- 1 root root 9 Nov 30 07:15 hello

Attempting to adjust directory and file ownership after the fact.
docker exec -it z1 chown -R root:root /z2

Produces the following errors.

chown: changing ownership of '/z2/hello': Operation not permitted
chown: changing ownership of '/z2': Operation not permitted

Reproduce the issue with the shown docker run, mkdir, docker cp, docker exec ls, and chown commands on the listed Ubuntu, Docker, and Sysbox versions. Investigate how Sysbox handles ownership mapping for docker cp and verify the fix by confirming copied files appear as root:root and can be changed with chown inside the container.