Comment 22 for bug 1712808

As far as I have been able to test, you don't actually need to create the /lib/modules directory but just run the command twice. At least that is what I have been doing in unprivileged containers on Proxmox 7.1 with the FUSE and Nesting options activated (using Debian 11):

~# apt install gnupg fuse squashfuse snapd

Shutdown container. Start again.

~# snap install core
error: cannot perform the following tasks:
- Setup snap "core" (11993) security profiles (cannot reload udev rules: exit status 1
udev output:
Failed to send reload request: No such file or directory
)
~# snap install core
core 16-2.52.1 from Canonical✓ installed