I pulled a standard docker ubuntu image and ran it like this:
docker run -i -t ubuntu bash -l
When I do an ls inside the container I see a proper filesystem and I can create files etc. How is this different from a VM? Also what are the limits of how big a file can I create on this container filesystem? Also is there a way I can create a file inside the container filesystem that persists in the host filesystem after the container is stopped or killed?