Server can no longer connect to Docker Containers

The macvlan subnet 192.168.7.248/29 allows an IP range from 192.168.7.249 to 192.168.7.254 which also covers the raspi IP and I think that’s the issue.
You could change the macvlan to 192.168.7.240/29 (allowing range 241-246 for containers) and change the container IPs or change the raspi IP.

No, if you already updated, it should be ok. To get updates with the system updates, you could enable the repository.

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