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I think you understood it all right, it’s just that /proc/<P>/status shows always only the capabilities granted to P in the user namespace it is a member of, there is no automatic adjusting of what is shown if you query from a different namespace. Nevertheless, your process P does hold all the capabilities when operating on U'. You can see it if you turn that sleep into a kill of a process belonging to U’. In fact such a kill would kill even a process belonging to a hierarchically nested U’’ owned by euid 1001 of U, all regardless of what /proc/<P>/status states about capabilities

LL3
– LL3

2020-08-07 12:33:05 +00:00
Commented Aug 7, 2020 at 12:33

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