failing container does not increase Restart count, and log content is unexpected

[bcle]

On a "normal" pod running on a traditional (not KIP) node, when a container fails, it is restarted, and the pod's restart count for that container is incremented.
With a KIP pod, the behavior is different in the following ways:

• The restart count is not incremented
• The State of the container is always Running, instead of the expected transitions between Terminated and Waiting.
• The output of kubectl logs for that pod shows the accumulated log output of all runs of the container, instead of the last one.
  To reproduce, start this simple pod that exits with status 1 after a few seconds:

kubectl run xenial --image=ubuntu:xenial --command -- bash -c 'echo "I am about to fail"; sleep 5; exit 1'

Then observe the state of the pod with kubectl describe pod xenial
Furthermore, observe the output of kubectl logs xenial