Unimplemented: failed to start shim: start failed: unsupported shim version (3): not implemented

Unfortunately, I seem to have just broken my github self-hosted runners by running apt-get update && apt-get upgrade -y on my ubuntu 24.04 (Noble) hosts. The error I get when trying to run the docker inside docker is:

docker: Error response from daemon: failed to create task for container: Unimplemented: failed to start shim: start failed: unsupported shim version (3): not implemented

docker version on my host:

$ docker -v
Docker version 29.2.1, build a5c7197

My docker image is:

FROM nestybox/ubuntu-noble-docker:latest

(I just re-pulled it and rebuilt with --no-cache to be sure)

And Sysbox is:

RUN curl -LO https://github.com/nestybox/sysbox/releases/download/v0.6.7/sysbox-ce_0.6.7.linux_amd64.deb
RUN apt install ./sysbox-ce_0.6.7.linux_amd64.deb -y

I have rebooted, rebuilt, and restarted the containers a number of times.

This setup has been working for a number of months, I started upgrading today after I had a mismatch with the gcloud utility. Who knows if I fixed that, because now this problem crops up before I get to the point where I can test the upgraded version of gcloud-cli.

Start by reproducing the nested-Docker failure on Ubuntu 24.04 with Docker 29.2.1, Sysbox CE 0.6.7, and nestybox/ubuntu-noble-docker:latest. Compare the host Docker and Sysbox versions and check whether the unsupported shim version is a compatibility issue; done means the container starts successfully without the shim error.