User's home dir is owned by 'nobody' and cannot chown

Hi

If I create a new unprivileged Debian 12 container, I'm unable to create a new user with a home directory that can be owned by that user. Any help would be appreciated

Steps to recreate:

1. Create a new Debian 12 unprivileged container
2. Edit the LXC file (per below)
3. Start it
4. In the container:
   1. useradd -u 1000 -m --shell=/usr/bin/bash jayden
   2. usermod -aG sudo jayden
   3. apt install sudo
   4. passwd jayden

UID for Jayden is 1000

Here's the error...

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