There are already many good answers in the comments, so I don’t feel the need to add much to it. But perhaps the following is worth mentioning:

• Fedora has got enough agency to continue efforts in what has been abandoned by Red Hat. Or, vice versa.
  • For example: it has continued to offer Btrfs as the default file system, while Red Hat has long since deprecated it.
  • Or, conversely, Red Hat has big plans for bootc. And while Fedora has done a decent job with Fedora Atomic, it certainly does not enjoy the resources and commitment it deserves; a pretty bad regression for (at least one of) the Fedora Atomic images was not considered a blocker for one of the more recent major release updates. Heck, it has become so bad that even the likes of both CentOS Stream and GNOME OS have shown to be more receptive when it comes to addressing problems and whatnot.
• It has been pointed out that Fedora would probably not survive in the event that Red Hat would cease ‘its support’.

Glad to help out 😊!

Thankfully the model forces upon the system to keep a pristine copy around. Which enabled us to fix this rather easy :P .

Did you try rpm-ostree reset ?

EDIT: The solution provided above ‘could’ perhaps work, but perhaps it’s way too radical of a solution 😅 …, so I understand if you don’t wanna go down that route. Instead, consider

sudo cp -a /usr/etc/containers/policy.json /etc/containers

as per this comment on github.