diff --git a/RELEASE_NOTES.md b/RELEASE_NOTES.md
index 95be0453fa..760dc40b19 100644
--- a/RELEASE_NOTES.md
+++ b/RELEASE_NOTES.md
@@ -36,6 +36,7 @@
 - The `--mount type=artifact` option to `podman create`, `podman run`, and `podman pod create` now mounts artifacts containing a only a single blob as a file at the given destination path if the path does not exist in the image.
 - The `podman volume export` command now refuses to export to `STDOUT` if it is a TTY ([#26506](https://github.com/containers/podman/issues/26506)).
 - When generating Quadlet units with options known to be problematic when used with Podman, such as `User=`, `Group=`, and `DynamicUser=` in the `[Service]` section of a unit, Quadlet will now warn the user of the potential incompatibility ([#26543](https://github.com/containers/podman/issues/26543)).
+- The `podman machine init` command now throws out errors if users try to mount `/var/lib/containers/storage/`, which podman is not able to support, due to virtiofs filesystem limitations with multiple UIDs/GIDs ([#27183](https://github.com/containers/podman/issues/27183)).
 
 ### Bugfixes
 - Fixed a bug where the `--security-opt unmask=` option to `podman create` and `podman run` did not allow comma-separated lists of paths to be passed, instead only allowing a single path.
diff --git a/pkg/machine/shim/host.go b/pkg/machine/shim/host.go
index cecf29a12d..ff52e9b475 100644
--- a/pkg/machine/shim/host.go
+++ b/pkg/machine/shim/host.go
@@ -833,6 +833,7 @@ func validateDestinationPaths(dest string) error {
 		"/tmp":  {},
 		"/usr":  {},
 		"/var":  {},
+		"/var/lib/containers/storage/":  {},
 	}
 	mountTarget := path.Clean(dest)
 	if _, ok := illegalMounts[mountTarget]; ok {