Project workspace directory in Rust dev container owned by root user

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I am trying to use the Rust dev container from a Linux system with a user with UID 1001 and GID 1001 via rootless Docker. As such, the permissions for the vscode user in the home directory seem to work fine:

Dev container home folder:

$ ls -lahn /home/vscode/
total 56K
drwxr-xr-x 1 1001 1001 4.0K Mar 31 22:59 .
drwxr-xr-x 1    0    0 4.0K Mar  5 18:13 ..
-rw-r--r-- 1 1001 1001  220 Mar 27  2022 .bash_logout
-rw-r--r-- 1 1001 1001 4.9K Mar  5 18:13 .bashrc
[...]
drwxr-xr-x 6 1001 1001 4.0K Mar 31 22:59 .vscode-server
-rw-r--r-- 1 1001 1001   22 Mar  5 18:13 .zprofile
-rw-r--r-- 1 1001 1001 3.9K Mar  5 18:13 .zshrc

However, the workspace /workspaces/project itself is mounted being owned by root (UID=0 and GID=0):

$ ls -lahn
total 120K
drwxrwxr-x 8 0 0 4.0K Mar 31 20:53 .
drwxr-xr-x 3 0 0 4.0K Mar 31 22:59 ..
-rw-rw-r-- 1 0 0  69K Mar 31 20:05 Cargo.lock
-rw-rw-r-- 1 0 0  303 Mar 31 20:05 Cargo.toml
drwxrwxr-x 2 0 0 4.0K Mar 31 20:05 data
drwxrwxr-x 2 0 0 4.0K Mar 31 21:48 .devcontainer
[...]
drwxrwxr-x 6 0 0 4.0K Mar 31 20:05 src

In contrast, the host project directory is owned by UID/GID 1001:

$ ls -lahn
total 120K
drwxrwxr-x  8 1001 1001 4.0K Mar 31 20:53 .
drwxrwxr-x 13 1001 1001 4.0K Mar 31 20:05 ..
drwxrwxr-x  2 1001 1001 4.0K Mar 31 21:48 .devcontainer
drwxrwxr-x  8 1001 1001 4.0K Mar 31 20:05 .git
drwxrwxr-x  2 1001 1001 4.0K Mar 31 20:53 .github
-rw-rw-r--  1 1001 1001   32 Mar 31 20:05 .gitignore
-rw-rw-r--  1 1001 1001  69K Mar 31 20:05 Cargo.lock
[...]
drwxrwxr-x  6 1001 1001 4.0K Mar 31 20:05 src

When changing the owner UID/GID in the container to 1001:1001, the host permissions are screwed up:

$ ls -lahn
total 124K
drwxrwxr-x  9 166536 166536 4.0K Apr  1 09:58 .
drwxrwxr-x 13   1001   1001 4.0K Mar 31 20:05 ..
drwxrwxr-x  2 166536 166536 4.0K Mar 31 21:48 .devcontainer
drwxrwxr-x  8 166536 166536 4.0K Mar 31 20:05 .git
drwxrwxr-x  2 166536 166536 4.0K Mar 31 20:53 .github
-rw-rw-r--  1 166536 166536   32 Mar 31 20:05 .gitignore
-rw-rw-r--  1 166536 166536  69K Mar 31 20:05 Cargo.lock
[...]
drwxrwxr-x  6 166536 166536 4.0K Mar 31 20:05 src
drwxr-xr-x  3 166536 166536 4.0K Apr  1 09:58 target

This is my devcontainer.json:

{
	"name": "Rust",
	"image": "mcr.microsoft.com/devcontainers/rust:1-1-bullseye",

	"remoteUser": "vscode",
	"containerUser": "vscode",
	"updateRemoteUserUID": true,
	"runArgs": [
		"-u",
		"1001:1001"
	]
}

I added the last four entries trying to fix the issue, alas without success.

[0x47]

The issue is being discussed at microsoft/vscode-remote-release#4646

[0x47]

Closing because this is an upstream issue