Docker error failed to register layer: lsetxattr

I've been banging my head against this issue for a couple weekends now and am still not sure entirely whats happening. I've been trying to setup PiHole using docker on my raspberry pi 4b openwrt router. Its setup using ext4 filesystem on a 16GB sdcard.

I've expanded the system space using the expand fs script from this page which should have more than enough space for images and such now. I tried following the docker ce installation instructions and when it failed thought maybe it was as permissions error on the internal drive so I setup a 32GB usb stick with f2fs filesystem that I mounted first as /opt/docker and then /mnt/docker being sure to change the docker settings to point to the appropriate directory each time but still get the same error in both cases:

failed to register layer: lsetxattr security.capability /bin/ping: operation not supported

I found a similar error thread here Docker pull fails - failed to register layer: operation not supported but couldn't parse out how to solve the issue other than to mount an external drive (hence why i started trying that route). I was able to get images to pull using the commands in that thread root@OpenWrt:~# ctr --address /var/run/docker/containerd/containerd.sock images pull docker.io/ but when I try to run docker-compose up -d or try to pull the image through the docker luci page I get the same failed to register error.

Is there some setting I'm missing on my docker that needs to be configured or some permission I need to grant to the filesystem so it can run properly? I'm totally lost here

Heres a screenshot of the full error from the luci docker page

Use xfs or btrfs for data