Nvidia-docker outputs an error after installation

Have no idea how to approach this after repeated tries reinstalling nvidia-docker and nvidia drivers. In an Ubuntu system I have nvidia drivers (460.27.04) and docker installed, and proceeded to install nvidia-docker2 to as an Ubuntu package. Usually this works with other computers. However in this case after installation, running docker with GPUs exposed returned a ‘could not select device driver’. Docker info does not even register the nvidia GPU runtime, although the binary nvidia-container-runtime is already installed.

Enabling ‘debug’ in docker settings also gave no extra information in dockerd’s service. I could find no logs anywhere else that proffers any other hint for this error.

$ docker -D run --rm --gpus all nvidia/cuda:11.0-base  
DEBU[0000] [hijack] End of stdout                       
docker: Error response from daemon: could not select device driver "" with capabilities: [[gpu]].

$ docker info | grep run grep run
 Runtimes: runc
 Default Runtime: runc
 runc version: 
WARNING: No swap limit support

$ dpkg -l | grep nvidia
ii  libnvidia-container-tools              1.7.0-1                                         amd64        NVIDIA container runtime library (command-line tools)
ii  libnvidia-container1:amd64             1.7.0-1                                         amd64        NVIDIA container runtime library
ii  nvidia-container-toolkit               1.7.0-1                                         amd64        NVIDIA container runtime hook
ii  nvidia-docker2                         2.8.0-1                                         all          nvidia-docker CLI wrapper

$ nvidia-smi
Tue Dec 21 10:05:50 2021       
| NVIDIA-SMI 460.27.04    Driver Version: 460.27.04    CUDA Version: 11.2     |

What could have gone wrong?