A bug was found in Moby (Docker Engine) where the data directory (typically /var/lib/docker) contained subdirectories with insufficiently restricted permissions, allowing otherwise unprivileged Linux users to traverse directory contents and execute programs. When containers included executable programs with extended permission bits (such as setuid), unprivileged Linux users could discover and execute those programs. When the UID of an unprivileged Linux user on the host collided with the file owner or group inside a container, the unprivileged Linux user on the host could discover, read, and modify those files.
This bug has been fixed in Moby (Docker Engine) 20.10.9. Users should update to this version as soon as possible. Running containers should be stopped and restarted for the permissions to be fixed.