Privileged container network issue.

Does anyone knows why privileged lxc container might not be able to have network connectivity?

I did two identical containers with vanilla default settings. The ONLY difference between two containers, is the fact that one of them is privileged and another one is not.

Privileged container can not resolve any network related requests. Running apt update I get this response

root@lxc-jellyfin:/# apt update
Ign:1 http://archive.ubuntu.com/ubuntu oracular InRelease
Ign:2...

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