If we try a sample from https://github.com/devfile/devworkspace-operator/pull/360 with the latest tooling which contains https://github.com/redhat-developer/web-terminal-tooling/pull/26 it will fail due to permissions lack, not possible to init home folder and kubeconfig inside.

It works on the master DWO, probably it's caused by fact that we dropped mkdir init  container there.