well it's just LXC, you can do a similar thing with libvirt also, but nspawn lets you run them as system services
docker containers default to this environment also but docker is a little more overhead and complexity with the layered filesystem, nspawn you have to make it all in one layer
What's the benefit of a system service?
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starts automatically when your server boots, can be easily restarted, and is contained and doesn't affect your server's setup
Oh like system ctl stuff, duh. You can't do that with lxc? How does lxc impact server setup