GitLab Docker update to 16.0 failed without --privileged flag

When I went to upgrade our docker container from 15.11.4-ee to 16.0.0-ee I noticed it failed to start. Checking the container logs, I see

[2023-05-23T07:22:48-04:00] ERROR: Running exception handlers
There was an error running gitlab-ctl reconfigure:
can’t create Thread: Operation not permitted
[2023-05-23T07:22:48-04:00] ERROR: Report handler GitLabHandler::Exception raised #<NameError: uninitialized constant GitLabHandler::Exception::OmnibusHelper>

Running handlers complete
[2023-05-23T07:22:48-04:00] ERROR: Exception handlers complete
Infra Phase failed. 0 resources updated in 01 seconds
[2023-05-23T07:22:48-04:00] FATAL: Stacktrace dumped to /opt/gitlab/embedded/cookbooks/cache/cinc-stacktrace.out
[2023-05-23T07:22:48-04:00] FATAL: ---------------------------------------------------------------------------------------
[2023-05-23T07:22:48-04:00] FATAL: PLEASE PROVIDE THE CONTENTS OF THE stacktrace.out FILE (above) IF YOU FILE A BUG REPORT
[2023-05-23T07:22:48-04:00] FATAL: ---------------------------------------------------------------------------------------
[2023-05-23T07:22:48-04:00] FATAL: ThreadError: can’t create Thread: Operation not permitted

I restarted the container by adding the --privileged flag and it started up normally.

Is using the --privileged flag going to be the requirement from now on for running GitLab in a container?

Thanks for any assistance here.