Description of problem:
When a container issues a reboot or telinit command regardless of privileged flag settings specifically when --pid=host is provided, the result will always meet a chroot error. 

Version-Release number of selected component (if applicable):
Red Hat Enterprise Linux Atomic Host release 7.2
open-vm-tools-9.10.2-4.el7.x86_64

How reproducible:

/usr/bin/docker run  --privileged -v /proc/:/hostproc/ -v /sys/fs/cgroup:/sys/fs/cgroup  -v /var/log:/var/log -v /run/systemd:/run/systemd -v /sysroot:/sysroot -v=/var/lib/sss/pipes/:/var/lib/sss/pipes/:rw -v /etc/passwd:/etc/passwd -v /etc/shadow:/etc/shadow -v /tmp:/tmp:rw -v /etc/sysconfig:/etc/sysconfig:rw -v /etc/resolv.conf:/etc/resolv.conf:rw -v /etc/nsswitch.conf:/etc/nsswitch.conf:rw -v /etc/hosts:/etc/hosts:rw -v /etc/hostname:/etc/hostname:rw --env container=docker --net=host  --pid=host openvmtools

with the following Dockerfile:

FROM registry.access.redhat.com/rhel7

RUN yum -y --disablerepo=\* --enablerepo=rhel-7-server-rpms install yum-utils && \
  yum-config-manager --disable \* && \
  yum-config-manager --enable rhel-7-server-rpms && \
  yum clean all


RUN yum -y install file open-vm-tools perl open-vm-tools-deploypkg net-tools && \
yum clean all


CMD /usr/bin/vmtoolsd


Steps to Reproduce:
1. Attempt to customize a VMware virtual machine running Atomic OS 7.2 
2. Use systemd unit file to automate the execution of the container for customization
3. The final step of the customization issues a telinit 0

Actual results:
Running in chroot, ignoring request.

Expected results:
Rebooted VM with properly applied networking configuration.

Additional info:
Please refer to the following bugzilla for more information concerning the hows and whys - 
https://bugzilla.redhat.com/show_bug.cgi?id=1166465


I dug into the systemd a little and here are the excerpts in question:

line 8050
https://github.com/systemd/systemd/blob/master/src/systemctl/systemctl.c

        if (arg_action != ACTION_SYSTEMCTL && running_in_chroot() > 0) {
                log_info("Running in chroot, ignoring request.");
                r = 0;
                goto finish;
        }

line 487
https://github.com/systemd/systemd/blob/master/src/basic/virt.c

int running_in_chroot(void) {
        int ret;

        ret = files_same("/proc/1/root", "/");
        if (ret < 0)
                return ret;

        return ret == 0;
}