The vulnerability arises because when unpacking container images, top-level symlinks like `exec-output` are preserved as-is on disk. The Incus code uses `os.Mkdir` on `exec-output` without verifying if it is a symlink, and subsequently writes output files following the symlink target. An attacker can craft an image with `exec-output` as a symlink to an arbitrary host directory (e.g., `/etc/cron.d`), causing output files to be written there. This allows placing malicious files that can lead to arbitrary command execution on the host. The issue affects versions prior to 7.2.0.

An attacker with the ability to import and launch crafted container images can write files to arbitrary locations on the host filesystem, potentially leading to arbitrary command execution. This compromises the host's confidentiality, integrity, and availability, making this a critical security risk.

Patch status is not yet confirmed — check the vendor advisory for current remediation guidance. Until a fix is available, avoid importing or launching untrusted container images. Monitor vendor communications for official patches or mitigations.