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Don't run the standalone docker install of rancher/rancher. It's not supported or meant for anything except dev/proof-of-concept use. Install k3s or run the rancher/k3s docker image if you must, and then deploy Rancher to k3s.

I was trying to deploy Rancher as PoC to play around with 😛 literally just following the quick start guide! But installing k3s on top of the rocky 9 VM does not exhibit the same issue with kube-proxy trying to use legacy iptables, so I will chalk it up to something about k3s-in-docker