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[Bug] cachyos kernels set CONFIG_OVERLAY_FS_INDEX=y which breaks experimental option: system.etc.overlay.enable = true; #2073

Description

@codebam

What happens?

The cachyos kernel config sets CONFIG_OVERLAY_FS_INDEX=y which breaks the experimental option: system.etc.overlay.enable = true;. When running rebuild switch the system ends up in a state without /etc mounted.

Workaround

boot.kernelParams = [ "overlay.index=off" ];

What is expected to happen?

/etc would be overlayed properly

If possible, please attach logs

$ nixos-rebuild switch --flake /persistent/etc/nixos --elevate=run0
building the system configuration...
Checking switch inhibitors... done
Installing Lanzaboote to "/boot"...
Collecting garbage...
Successfully installed Lanzaboote.
stopping the following units: applyGpuSettings.service
activating the configuration...
remounting /etc...
mount: /run/nixos-etc.haonTk013O: overlay already mounted on /etc.
       dmesg(1) may have more information after failed mount system call.
mount: /etc: bad option; moving a mount residing under a shared mount is unsupported.
       dmesg(1) may have more information after failed mount system call.
rmdir: failed to remove '/run/nixos-etc.haonTk013O': Directory not empty
Activation script snippet 'etc' failed (1)
/nix/store/c5nipyz0910njp0p3kylxiyivakly88w-sops-install-secrets-0.0.1/bin/sops-install-secrets: manifest is not valid: failed to lookup user 'codebam': user: unknown user codebam
Activation script snippet 'setupSecrets' failed (1)
Failed to run activate script

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