distrobox already creates the containers in privileged mode:
❯ podman container inspect c364fe996b19 | grep -i privileged
"io.podman.annotations.privileged": "TRUE",
"--privileged",
"io.podman.annotations.privileged": "TRUE",
"Privileged": true,
So rootless inside rootless should work, I think.
Another colleague asked the maintainer, who responded with:
> I think is something about opensuse, on ubuntu the guide works.
> After a quick test looks like if you do chmod +s /usr/bin/newuidmap /usr/bin/newgidmap works
> I guess a setcap problem