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We've aligned setgid behavior over multiple kernel releases. The details
can be found in commit cf619f89 ("Merge tag 'fs.ovl.setgid.v6.2' of
git://git.kernel.org/pub/scm/linux/kernel/git/vfs/idmapping") and
commit 426b4ca2 ("Merge tag 'fs.setgid.v6.0' of
git://git.kernel.org/pub/scm/linux/kernel/git/brauner/linux"

).
Consistent setgid stripping behavior is now encapsulated in the
setattr_should_drop_sgid() helper which is used by all filesystems that
strip setgid bits outside of vfs proper. Usually ATTR_KILL_SGID is
raised in e.g., chown_common() and is subject to the
setattr_should_drop_sgid() check to determine whether the setgid bit can
be retained. Since nfsd is raising ATTR_KILL_SGID unconditionally it
will cause notify_change() to strip it even if the caller had the
necessary privileges to retain it. Ensure that nfsd only raises
ATR_KILL_SGID if the caller lacks the necessary privileges to retain the
setgid bit.

Without this patch the setgid stripping tests in LTP will fail:

> As you can see, the problem is S_ISGID (0002000) was dropped on a
> non-group-executable file while chown was invoked by super-user, while

[...]

> fchown02.c:66: TFAIL: testfile2: wrong mode permissions 0100700, expected 0102700

[...]

> chown02.c:57: TFAIL: testfile2: wrong mode permissions 0100700, expected 0102700

With this patch all tests pass.
Reported-by: Sherry Yang <sherry.yang@oracle.com>
Signed-off-by: Christian Brauner <brauner@kernel.org>
Reviewed-by: Jeff Layton <jlayton@kernel.org>
Cc: <stable@vger.kernel.org>
Signed-off-by: Chuck Lever <chuck.lever@oracle.com>