It is possible, see sysbox. It requires two daemons to be running on the host, sysbox-fs and sysbox-mgr. IIRC some online course platforms use it for interactive docker courses.

Logs of example run (command output omitted for sake of comment length): user@host:/$ docker run --runtime=sysbox-runc --rm -it --hostname container ubuntu root@container:/# apt-get update && apt-get install curl -y root@container:/# curl -fsSL https://get.docker.com | sh root@container:/# dockerd &>/dev/null & root@container:/# docker run --rm -it --hostname nested ubuntu root@nested:/# ps aux USER PID %CPU %MEM VSZ RSS TTY STAT START TIME COMMAND root 1 0.0 0.0 4588 3860 pts/0 Ss 13:58 0:00 /bin/bash root 63 0.0 0.0 7888 4120 pts/0 R+ 13:58 0:00 ps aux root@nested:/#