Updating NVIDIA drivers broke the NVIDIA container toolkit. I fixed this by re-installing the NVIDIA container toolkit in rpm-ostree by uninstalling, rebooting, installing, rebooting. Yes, that actually somehow changes things, but it works now.

In short, run this on your host machine, in order:

export NVIDIA_CONTAINER_TOOLKIT_VERSION=1.17.8-1
sudo rpm-ostree uninstall \
  nvidia-container-toolkit-${NVIDIA_CONTAINER_TOOLKIT_VERSION} \
  nvidia-container-toolkit-base-${NVIDIA_CONTAINER_TOOLKIT_VERSION} \
  libnvidia-container-tools-${NVIDIA_CONTAINER_TOOLKIT_VERSION} \
  libnvidia-container1-${NVIDIA_CONTAINER_TOOLKIT_VERSION}
  
systemctl reboot

After the reboot…

export NVIDIA_CONTAINER_TOOLKIT_VERSION=1.17.8-1
sudo rpm-ostree install \
  nvidia-container-toolkit-${NVIDIA_CONTAINER_TOOLKIT_VERSION} \
  nvidia-container-toolkit-base-${NVIDIA_CONTAINER_TOOLKIT_VERSION} \
  libnvidia-container-tools-${NVIDIA_CONTAINER_TOOLKIT_VERSION} \
  libnvidia-container1-${NVIDIA_CONTAINER_TOOLKIT_VERSION}
  
systemctl reboot

Source