Cannot forward gpg-agent with devpod in a "docker-in-docker" container

[RishikesavanRamesh]

What happened?
Cannot forward gpg-agent : gpg agent setup is failing

01:47:55 info Run 'ssh admin-devspace-planets-rosterra.devpod' to ssh into the devcontainer
01:47:55 info Starting vscode in browser mode at http://localhost:10800/?folder=/workspace
01:47:55 info Setting up backhaul SSH connection
01:48:00 info gpg: directory '/home/developer/.gnupg' created
01:48:00 info gpg: keybox '/home/developer/.gnupg/pubring.kbx' created
01:48:00 info gpg: /home/developer/.gnupg/trustdb.gpg: trustdb created
01:48:00 info Reverse forwarding local unix//root/.gnupg/S.gpg-agent.extra to remote unix//root/.gnupg/S.gpg-agent.extra
01:48:00 info Error calling gpg-public-keys: Post "http://localhost:12049/gpg-public-keys": dial tcp [::1]:12049: connect: connection refused
01:48:01 info Error calling gpg-public-keys: Post "http://localhost:12049/gpg-public-keys": dial tcp [::1]:12049: connect: connection refused
01:48:01 info Error calling gpg-public-keys: Post "http://localhost:12049/gpg-public-keys": dial tcp [::1]:12049: connect: connection refused
01:48:02 info Error calling gpg-public-keys: Post "http://localhost:12049/gpg-public-keys": dial tcp [::1]:12049: connect: connection refused
01:48:02 info Fetch public key: get public gpg keys: Post "http://localhost:12049/gpg-public-keys": dial tcp [::1]:12049: connect: connection refused
01:48:02 info get public gpg keys: Post "http://localhost:12049/gpg-public-keys": dial tcp [::1]:12049: connect: connection refused
01:48:02 info Error tunneling to container: wait: remote command exited without exit status or exit signal
01:48:02 info tunnel to container: run in container: run gpg agent setup command: Process exited with status 1
01:48:02 error Failed to setup backhaul SSH connection:  exit status 1
01:48:03 error Try using the --debug flag to see a more verbose output
01:48:03 fatal outer tunnel: exit status 1
/Projects/@admin/_devspace/_planets/_rosterra # gpg --list-keys
[keyboxd]
---------
pub   rsa4096 2025-01-15 [SC]
      4A86D720417928707DCA428CA4E2D4B0AE43916C
uid           [ultimate] Rishikesavan Ramesh (devspace-key) <[email protected]>
sub   rsa4096 2025-01-15 [E]

/Projects/@admin/_devspace/_planets/_rosterra # ps aux | grep gpg
 3775 root      0:00 grep gpg
17868 root      0:03 gpg-agent --verbose --daemon --log-file /tmp/gpg-agent.log --allow-preset-passphrase --default-cache-ttl=31536000
/Projects/@admin/_devspace/_planets/_rosterra # 

What did you expect to happen instead?
I expect the gpg forwarding works correctly, so i can make signed commits withing the devpods running in a dind container

How can we reproduce the bug? (as minimally and precisely as possible)
My Dockerfile, and startup script of main dind container.

/Projects/@admin/_devspace # ls
Dockerfile         README.md          _planets           daemon.json        start_devspace.sh
/Projects/@admin/_devspace # cat Dockerfile 
FROM docker:dind

WORKDIR /Projects

RUN apk update; apk add curl npm tmux gpg gpg-agent nano bash 

RUN curl -L -o devpod "https://github.com/loft-sh/devpod/releases/latest/download/devpod-linux-amd64" && install -c -m 0755 devpod /usr/local/bin && rm -f devpod

RUN mkdir /etc/docker
COPY daemon.json /etc/docker/daemon.json

RUN devpod provider add docker

RUN devpod context set-options -o EXIT_AFTER_TIMEOUT=false
RUN devpod context set-options default -o SSH_INJECT_GIT_CREDENTIALS=true
RUN devpod context set-options default -o SSH_INJECT_DOCKER_CREDENTIALS=true
RUN devpod context set-options default -o GPG_AGENT_FORWARDING=true

RUN npm install -g @devcontainers/cli
/Projects/@admin/_devspace # cat start_devspace.sh 
#!/run/current-system/profile/bin/env bash

docker run -d --name=devspace \
              --privileged \
              --restart unless-stopped \
              --network=host --cap-add=ALL --security-opt seccomp=unconfined \
              --volume /home/rishikesavan/Projects:/Projects \
              --volume /dev:/dev \
              --volume dind-var-lib-docker:/var/lib/docker \
              devspace
/Projects/@admin/_devspace # docker -v
Docker version 27.4.1, build b9d17ea
/Projects/@admin/_devspace # 

My devcontainer.json:
With or without dind feature in this devcontainer, i could not forward gpg agent.

/Projects/@admin/_devspace # cat _planets/_rosterra/.devcontainer/ros2/devcontainer.json 
{
        "dockerComposeFile": ["compose.yml"],
        "service": "ros-dev",
        "runServices": ["ros-dev"],
        "shutdownAction": "stopCompose",
        "workspaceFolder": "/workspace",
        "features": {
//              "ghcr.io/devcontainers/features/docker-in-docker:2": {}
        },
        "customizations": {
                "vscode": {
                        "extensions": [
                                "ms-vscode.cpptools",
                                "ms-vscode.cpptools-themes",
                                "twxs.cmake",
                                "donjayamanne.python-extension-pack",
                                "eamodio.gitlens",
                                "ms-iot.vscode-ros",
                                "ms-azuretools.vscode-docker",
                                "ms-vscode.cmake-tools",
                                "eclipse-cdt.vscode-trace-extension",
                                "eclipse-cdt.vscode-trace-server",
                                "redhat.vscode-xml",
                                "ms-toolsai.jupyter"
                        ]
                }
        },
        "postCreateCommand": "bash /post-create-script.sh"
}

Local Environment:

• DevPod Version: v0.6.8
• Operating System: linux
• ARCH of the OS: AMD64
• Main linux host docker version : Docker version 27.4.1, build b9d17ea

Anything else we need to know?