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Quagga inside a VE requires 3 Linux capabilities configured for the container on the hostnode:
vzctl set 24 <id> --capability net_admin:on --save vzctl set 24 <id> --capability net_raw:on --save vzctl set 24 <id> --capability sys_admin:on --save
When they are not configured, you'll see the following symptoms when starting up zebra:
