Description of problem:

When running systemd in a container based on CentOS 8 Stream, the systemd-hostnamed.service is reported failed.

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

systemd-239-76.el8.x86_64

How reproducible:

Deterministic.

Steps to Reproduce:
1. podman run --name centos-8-stream --rm -ti quay.io/centos/centos:stream8 /usr/sbin/init
2. From another terminal
podman exec centos-8-stream systemctl status systemd-hostnamed.service

Actual results:

systemd 239 (239-76.el8) running in system mode. (+PAM +AUDIT +SELINUX +IMA -APPARMOR +SMACK +SYSVINIT +UTMP +LIBCRYPTSETUP +GCRYPT +GNUTLS +ACL +XZ +LZ4 +SECCOMP +BLKID +ELFUTILS +KMOD +IDN2 -IDN +PCRE2 default-hierarchy=legacy)
Detected virtualization container-other.
Detected architecture x86-64.

Welcome to CentOS Stream 8!

Set hostname to <a73b28b84f63>.
Initializing machine ID from container UUID.
[ OK ] Listening on initctl Compatibility Named Pipe.
[ OK ] Listening on Journal Socket.
[ OK ] Reached target Local File Systems.
-.slice: Failed to set memory.min: Operation not permitted
-.slice: Failed to set memory.low: Operation not permitted
-.slice: Failed to set memory.high: Operation not permitted
-.slice: Failed to set memory.max: Operation not permitted
-.slice: Failed to set memory.swap.max: Operation not permitted
-.slice: Failed to set pids.max: Operation not permitted
Starting Rebuild Dynamic Linker Cache...
[ OK ] Started Forward Password Requests to Wall Directory Watch.
[ OK ] Reached target Remote File Systems.
[ OK ] Started Dispatch Password Requests to Console Directory Watch.
[ OK ] Reached target Paths.
[ OK ] Reached target Slices.
[ OK ] Reached target Local Encrypted Volumes.
Starting Read and set NIS domainname from /etc/sysconfig/network...
Starting Rebuild Journal Catalog...
Starting Create System Users...
Starting Rebuild Hardware Database...
[ OK ] Listening on Journal Socket (/dev/log).
Starting Journal Service...
[ OK ] Reached target Swap.
[ OK ] Listening on Process Core Dump Socket.
[ OK ] Started Rebuild Dynamic Linker Cache.
[ OK ] Started Read and set NIS domainname from /etc/sysconfig/network.
[ OK ] Started Rebuild Journal Catalog.
[ OK ] Started Create System Users.
[ OK ] Started Rebuild Hardware Database.
Starting Update is Completed...
[ OK ] Started Update is Completed.
[ OK ] Started Journal Service.
Starting Flush Journal to Persistent Storage...
[ OK ] Started Flush Journal to Persistent Storage.
Starting Create Volatile Files and Directories...
[ OK ] Started Create Volatile Files and Directories.
Starting Update UTMP about System Boot/Shutdown...
[ OK ] Started Update UTMP about System Boot/Shutdown.
[ OK ] Reached target System Initialization.
[ OK ] Started Daily Cleanup of Temporary Directories.
[ OK ] Listening on D-Bus System Message Bus Socket.
[ OK ] Reached target Sockets.
[ OK ] Started dnf makecache --timer.
[ OK ] Reached target Timers.
[ OK ] Reached target Basic System.
[ OK ] Started D-Bus System Message Bus.
Starting Network Manager...
Starting Restore /run/initramfs on shutdown...
[ OK ] Started Restore /run/initramfs on shutdown.
[ OK ] Started Network Manager.
[ OK ] Reached target Network.
Starting Permit User Sessions...
Starting Network Manager Wait Online...
Starting Hostname Service...
[FAILED] Failed to start Hostname Service.
See 'systemctl status systemd-hostnamed.service' for details.
[ OK ] Started Permit User Sessions.
[ OK ] Reached target Multi-User System.
Starting Update UTMP about System Runlevel Changes...
[ OK ] Started Update UTMP about System Runlevel Changes.
[ OK ] Started Network Manager Wait Online.
Starting Network Manager Script Dispatcher Service...
[ OK ] Reached target Network is Online.
[ OK ] Started Network Manager Script Dispatcher Service.

● systemd-hostnamed.service - Hostname Service
Loaded: loaded (/usr/lib/systemd/system/systemd-hostnamed.service; static; vendor preset: disabled)
Active: failed (Result: exit-code) since Wed 2023-07-19 07:18:49 UTC; 32s ago
Docs: man:systemd-hostnamed.service(8)
man:hostname(5)
man:machine-info(5)
https://www.freedesktop.org/wiki/Software/systemd/hostnamed
Process: 34 ExecStart=/usr/lib/systemd/systemd-hostnamed (code=exited, status=225/NETWORK)
Main PID: 34 (code=exited, status=225/NETWORK)

Jul 19 07:18:49 a73b28b84f63 systemd[1]: Starting Hostname Service...
Jul 19 07:18:49 a73b28b84f63 systemd[34]: systemd-hostnamed.service: Failed to set up network namespacing: Operation not permitted
Jul 19 07:18:49 a73b28b84f63 systemd[34]: systemd-hostnamed.service: Failed at step NETWORK spawning /usr/lib/systemd/systemd-hostnamed: Operation not permitted
Jul 19 07:18:49 a73b28b84f63 systemd[1]: systemd-hostnamed.service: Main process exited, code=exited, status=225/NETWORK
Jul 19 07:18:49 a73b28b84f63 systemd[1]: systemd-hostnamed.service: Failed with result 'exit-code'.
Jul 19 07:18:49 a73b28b84f63 systemd[1]: Failed to start Hostname Service.

Expected results:

Nothing failing out of box.

Additional info:

On CentOS Stream 9 container with systems installed, the service reports

○ systemd-hostnamed.service - Hostname Service
Loaded: loaded (/usr/lib/systemd/system/systemd-hostnamed.service; static)
Drop-In: /usr/lib/systemd/system/systemd-hostnamed.service.d
└─disable-privatedevices.conf
Active: inactive (dead)
Docs: man:systemd-hostnamed.service(8)
man:hostname(5)
man:machine-info(5)
man:org.freedesktop.resolve1(5)

With registry.access.redhat.com/ubi8-init the service reports

● systemd-hostnamed.service - Hostname Service
Loaded: loaded (/usr/lib/systemd/system/systemd-hostnamed.service; static; vendor preset: disabled)
Active: inactive (dead)
Docs: man:systemd-hostnamed.service(8)
man:hostname(5)
man:machine-info(5)
https://www.freedesktop.org/wiki/Software/systemd/hostnamed