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I am kind of surprised that the Action runner isn’t just some sort of Container or VM manager like Drone?

The runs actually occur on your real OS? That seems strange and dangerous.

It lets you manage containers in your actions. Nesting containers is not straightforward in many cases.

I can be really nice to have this option but I'm surprised it is the default. For example I use Nix and running a build on the host is great because you get the shared caching. When doing this on GitLab I have a tiny shim socket image that bind-mounts the host daemon socket.

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