Description of problem:

With the following Dockerfile

FROM rhel7
ENV container docker
ENTRYPOINT [ "/usr/sbin/init" ]

running the container via

docker run --rm -ti --name systemd-hook-container systemd-hook

with

docker-1.12.3-4.el7.x86_64
oci-systemd-hook-0.1.4-6.git337078c.el7.x86_64

works.

Alas, upgrading to oci-systemd-hook-0.1.4-7.gita9c551a.el7.x86_64 breaks the setup.

Version-Release number of selected component (if applicable):

oci-systemd-hook-0.1.4-7.gita9c551a.el7.x86_64

How reproducible:

Deterministic.

Steps to Reproduce:
1. Have systemd-hook/Dockerfile shown above.
2. Build container image: docker build -t systemd-hook systemd-hook
3. Run container: docker run --rm -ti --name systemd-hook-container systemd-hook

Actual results:

systemd 219 running in system mode. (+PAM +AUDIT +SELINUX +IMA -APPARMOR +SMACK +SYSVINIT +UTMP +LIBCRYPTSETUP +GCRYPT +GNUTLS +ACL +XZ -LZ4 -SECCOMP +BLKID +ELFUTILS +KMOD +IDN)
Detected virtualization docker.
Detected architecture x86-64.

Welcome to Red Hat Enterprise Linux Server 7.3 (Maipo)!

Set hostname to <bc1da43aa1dc>.
Failed to install release agent, ignoring: No such file or directory
Failed to create root cgroup hierarchy: Read-only file system
Failed to allocate manager object: Read-only file system
[!!!!!!] Failed to allocate manager object, freezing.
Error response from daemon: No such container: bc1da43aa1dc7d34cb3fc614eaa72617f9e6292b48abb13d1681579b41bfa215
Error response from daemon: devmapper: Unknown device 914d90005e813b6fb5d357cb6d8ab808df606b47917459ffe0387c562db869a4

Expected results:

# docker run --rm -ti --name systemd-hook-container systemd-hook
systemd 219 running in system mode. (+PAM +AUDIT +SELINUX +IMA -APPARMOR +SMACK +SYSVINIT +UTMP +LIBCRYPTSETUP +GCRYPT +GNUTLS +ACL +XZ -LZ4 -SECCOMP +BLKID +ELFUTILS +KMOD +IDN)
Detected virtualization docker.
Detected architecture x86-64.

Welcome to Red Hat Enterprise Linux Server 7.3 (Maipo)!

Set hostname to <9dd80e7f2840>.
[  OK  ] Reached target Encrypted Volumes.
[  OK  ] Created slice Root Slice.
[  OK  ] Listening on /dev/initctl Compatibility Named Pipe.
[  OK  ] Listening on Journal Socket.
[  OK  ] Created slice System Slice.
[  OK  ] Created slice system-getty.slice.
         Starting Journal Service...
[  OK  ] Listening on Delayed Shutdown Socket.
[  OK  ] Reached target Remote File Systems.
[  OK  ] Created slice User and Session Slice.
[  OK  ] Reached target Slices.
         Starting Load/Save Random Seed...
[...]

Additional info:

Downgrade to oci-systemd-hook-0.1.4-6.git337078c.el7.x86_64 fixes the problem.