Upgrade to Version 4.34.0 with VirtioFS breaks file permissions again

Description

We had the issue that a team member was not able to run composer install in a docker container without any git dubious ownership errors in some composer packages.

I was trying to reproduce the issue and could not find any issue at first until I saw that there is a docker.app upgrade from version 4.33.0 to 4.34.0. Finally I could reproduce the issue. I was downgrading docker to 4.33.0 again for reproducing the previous state. It was running fine, but not with 4.34.0. After checking the issues I found the issues about permission issues with virtioFS. I tried the upgrade again with version 4.34.0 and switched the file sharing settings from VirtioFS to gRPC FUSE and it was working as expected.

Reproduce

Upgrade Docker.app to 4.34.0 and restart app (file sharing is set to VirtioFS in docker)
In a docker stack with a composer.json with some git based packages delete the vendor directory.
Run docker compose exec containername bash to get into the container console
Run composer install
You will get some of the following errors while installing a some composer packages: Install of any/package failed The cloning process into a directory will fail with this error summary: fatal: detected dubious ownership in repository at 'install target directory'

Expected behavior

Install process with composer install run without any (permission) errors.

docker version

Client:
 Version:           27.2.0
 API version:       1.47
 Go version:        go1.21.13
 Git commit:        3ab4256
 Built:             Tue Aug 27 14:14:45 2024
 OS/Arch:           darwin/arm64
 Context:           desktop-linux

Server: Docker Desktop 4.34.0 (165256)
 Engine:
  Version:          27.2.0
  API version:      1.47 (minimum version 1.24)
  Go version:       go1.21.13
  Git commit:       3ab5c7d
  Built:            Tue Aug 27 14:15:41 2024
  OS/Arch:          linux/arm64
  Experimental:     false
 containerd:
  Version:          1.7.20
  GitCommit:        8fc6bcff51318944179630522a095cc9dbf9f353
 runc:
  Version:          1.1.13
  GitCommit:        v1.1.13-0-g58aa920
 docker-init:
  Version:          0.19.0
  GitCommit:        de40ad0

docker info

Client:
 Version:    27.2.0
 Context:    desktop-linux
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc.)
    Version:  v0.16.2-desktop.1
    Path:     /Users/username/.docker/cli-plugins/docker-buildx
  compose: Docker Compose (Docker Inc.)
    Version:  v2.29.2-desktop.2
    Path:     /Users/username/.docker/cli-plugins/docker-compose
  debug: Get a shell into any image or container (Docker Inc.)
    Version:  0.0.34
    Path:     /Users/username/.docker/cli-plugins/docker-debug
  desktop: Docker Desktop commands (Alpha) (Docker Inc.)
    Version:  v0.0.15
    Path:     /Users/username/.docker/cli-plugins/docker-desktop
  dev: Docker Dev Environments (Docker Inc.)
    Version:  v0.1.2
    Path:     /Users/username/.docker/cli-plugins/docker-dev
  extension: Manages Docker extensions (Docker Inc.)
    Version:  v0.2.25
    Path:     /Users/username/.docker/cli-plugins/docker-extension
  feedback: Provide feedback, right in your terminal! (Docker Inc.)
    Version:  v1.0.5
    Path:     /Users/username/.docker/cli-plugins/docker-feedback
  init: Creates Docker-related starter files for your project (Docker Inc.)
    Version:  v1.3.0
    Path:     /Users/username/.docker/cli-plugins/docker-init
  sbom: View the packaged-based Software Bill Of Materials (SBOM) for an image (Anchore Inc.)
    Version:  0.6.0
    Path:     /Users/username/.docker/cli-plugins/docker-sbom
  scout: Docker Scout (Docker Inc.)
    Version:  v1.13.0
    Path:     /Users/username/.docker/cli-plugins/docker-scout

Server:
 Containers: 0
  Running: 0
  Paused: 0
  Stopped: 0
 Images: 81
 Server Version: 27.2.0
 Storage Driver: overlay2
  Backing Filesystem: extfs
  Supports d_type: true
  Using metacopy: false
  Native Overlay Diff: true
  userxattr: false
 Logging Driver: json-file
 Cgroup Driver: cgroupfs
 Cgroup Version: 2
 Plugins:
  Volume: local
  Network: bridge host ipvlan macvlan null overlay
  Log: awslogs fluentd gcplogs gelf journald json-file local splunk syslog
 Swarm: inactive
 Runtimes: io.containerd.runc.v2 runc
 Default Runtime: runc
 Init Binary: docker-init
 containerd version: 8fc6bcff51318944179630522a095cc9dbf9f353
 runc version: v1.1.13-0-g58aa920
 init version: de40ad0
 Security Options:
  seccomp
   Profile: unconfined
  cgroupns
 Kernel Version: 6.10.4-linuxkit
 Operating System: Docker Desktop
 OSType: linux
 Architecture: aarch64
 CPUs: 10
 Total Memory: 9.706GiB
 Name: docker-desktop
 ID: 4e2c7e85-7a13-40e7-9f3b-7b6497b95c22
 Docker Root Dir: /var/lib/docker
 Debug Mode: false
 HTTP Proxy: http.docker.internal:3128
 HTTPS Proxy: http.docker.internal:3128
 No Proxy: hubproxy.docker.internal
 Labels:
  com.docker.desktop.address=unix:///Users/username/Library/Containers/com.docker.docker/Data/docker-cli.sock
 Experimental: false
 Insecure Registries:
  hubproxy.docker.internal:5555
  127.0.0.0/8
 Live Restore Enabled: false

Diagnostics ID

CDFACD1D-F7C3-4893-A89D-9066ADF69301

Additional Info

No response

docker / for-mac