Why enabling swapfile on overlayfs fails with the error message "swapon failed: Invalid argument" in Red Hat Enterprise Linux ?

Issue

• Why enabling swapfile on overlayfs fails with the error message "swapon failed: Invalid argument" in Red Hat Enterprise Linux ?
• Enabling swap from a privileged container fails with the error "swapon failed: Invalid argument" in Red Hat Enterprise Linux

[root@rhel9 ~]# podman run -it --hostname swap --name swap --privileged registry.access.redhat.com/ubi8/ubi:8.10 /bin/bash

[root@swap /]# dd if=/dev/zero of=/swapfile bs=1M count=4096
4096+0 records in
4096+0 records out
4294967296 bytes (4.3 GB, 4.0 GiB) copied, 1.21122 s, 3.5 GB/s

[root@swap /]# chmod 600 /swapfile

[root@swap /]# mkswap /swapfile
Setting up swapspace version 1, size = 4 GiB (4294963200 bytes)
no label, UUID=10c85cc9-5d82-4cce-9a8f-114c3c54d636

root@swap /]# swapon /swapfile
swapon: /swapfile: swapon failed: Invalid argument