Red Hat Quay: feature proxy storage causes pull failure when using libpod based tools (cri-o/podman)

Solution In Progress - Updated -

Issue

When FEATURE_PROXY_STORAGE: true in config.yaml docker completes pull while crictl returns 400:

# docker -D pull quay.example.com/ruby/ruby-ex:latest 
Trying to pull repository quay.example.com/ruby/ruby-ex ... 
latest: Pulling from quay.example.com/ruby/ruby-ex 
Digest: sha256:dc39dd45b583f81d88ddaebee1d4d265122c65c9911f88cb859347698adbf70e
Status: Image is up to date for quay.example.com/ruby/ruby-ex:latest
# crictl -D pull quay.example.com/ruby/ruby-ex:latest
W0805 15:21:07.421594 87474 util_unix.go:75] Using "/var/run/crio/crio.sock" as endpoint is deprecated, please consider using full url format "unix:///var/run/crio/crio.sock". 
DEBU[0000] PullImageRequest: &PullImageRequest{Image:&ImageSpec{Image:quay.example.com/ruby/ruby-ex:latest,},Auth:nil,SandboxConfig:nil,} 
DEBU[0002] PullImageResponse: nil 
FATA[0002] pulling image failed: rpc error: code = Unknown desc = Error parsing image configuration: Invalid status code returned when fetching blob 400 

Environment

Red Hat Quay v3.0.4

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