Rancher & openstack - error during connect


I created a private network and a vm and installed rancher in openstack. Then using the same vm, in the same project, I am trying to bring up a cluster.

The error I get is:

[INFO ] Initiating Kubernetes cluster
[INFO ] [dialer] Setup tunnel for host [xx.xx.xx.xx]
[ERROR] Failed to set up SSH tunneling for host [xx.xx.xx.xx]: Can’t retrieve Docker Info: error during connect: Get “http://%2Fvar%2Frun%2Fdocker.sock/v1.24/info”: can not build dialer to [c-lct2p:m-gz6gq]
[ERROR] Removing host [xx.xx.xx.xx] from node lists
[ERROR] [state] can’t fetch legacy cluster state from Kubernetes: Cluster must have at least one etcd plane host: failed to connect to the following etcd host(s) [xx.xx.xx.xx]

here xx.xx.xx.xx is the IP of the server it brings up.

I have ssh to the server, and I have validated the default user ( ubuntu ) is in the docker group and can do docker ps. ( validated by booting up a new image and doing docker ps )

The same is the case if I use rocky9, centos and rancheros.

I used the Rancher1.x due to it being documented. Is it still the way for openstack deployment or should rancher 2.x be used ?