(fedora) DNS resolution broken when run under systemd and --privileged

The following script demonstrates the problem by attempting to resolve redhat.com inside the container. The problem does not seem to reproduce itself when --privileged flag is omitted.

for image in registry.fedoraproject.org/fedora-bootc:latest quay.io/centos-bootc/centos-bootc:stream10 ; do
   sudo podman run -it -d --privileged --name dns-test "${image}" >/dev/null ; 
   sleep 1 ;
   echo "Image: ${image}"
   sudo podman exec -it dns-test curl -I redhat.com ;
   sudo podman rm -f --time 0 dns-test >/dev/null;
done

Typical output:

Image: registry.fedoraproject.org/fedora-bootc:latest
curl: (6) Could not resolve host: redhat.com

Image: quay.io/centos-bootc/centos-bootc:stream10
HTTP/1.1 301 Moved Permanently
Date: Mon, 24 Nov 2025 19:59:50 GMT
Server: Apache
Location: https://www.redhat.com/en