controller fails to start with munged error and permission issue on /dev/null

[awaelchli]

Following the instructions in the README, we are hitting this error after running

docker-compose up

controller    | Couldn't open /dev/null: Permission denied
controller    | cat: /home/worker/.ssh/id_rsa.pub: No such file or directory
controller    | .ssh/
controller    | .ssh/authorized_keys
controller    | .ssh/config
controller    | /
controller    | Generating a pseudo-random key using /dev/urandom completed.
controller    | munged: Error: Failed to seed PRNG with sufficient entropy

Did anyone manage to solve this? Would be glad for any pointers to what could cause the issue :)