Unable to add a user to the users group

I have an application deployed on fedora:41 images, and can add the user to users as follows:

$ sudo usermod -a -G users gbraad

and this is also reflected for the user:

$ cat /etc/group | grep users
users:x:100:gbraad
$ newgrp
$ groups
gbraad wheel users kasmvnc-cert pulse-access

However, when doing this on the fedora-bootc:41 image this is not possible:

$ sudo usermod -a -G users gbraad
$ cat /etc/passwd | grep gbraad
gbraad:x:1000:1000::/var/home/gbraad:/usr/bin/zsh
$ cat /etc/group | grep gbraad
wheel:x:10:gbraad
gbraad:x:1000:
pulse-access:x:980:gbraad
kasmvnc-cert:x:976:gbraad
$ cat /etc/group | grep users
$ newgrp
[systemd]
Failed Units: 3
  generate-certs.service
  kasmvncserver.service
  kclient.service
$ groups
gbraad wheel kasmvnc-cert pulse-access
$ groupadd -g 100 users
groupadd: group 'users' already exists

$ sudo bootc container lint
Lint warning: var-log: Found non-empty logfile: /var/log/dnf5.log (and 8 more)
Checks passed: 8
Checks skipped: 1
Warnings: 1

Note: these units fail because they rely on giving the user permission to certain files. This also happens for running the bootc container with podman. Note2: an image that I generated on 250106 did work as expected.