Docker-containerd crash on 1.12.6 and 1.13.1

We are using Kubernetes 1.5.3 with docker 1.12.6. We were seeing random docker ps hangs in our kubernetes cluster. At the same time we also saw docker-containerd crash. This was happening when we ran 60 instances of a java application on our cluster which got distributed on some of the nodes.

docker ps and docker run would hang. docker version and docker info was working. docker inspect was only hanging for a specific container.

I upgraded docker from docker-engine-1.12.6-1.el7.centos.x86_64 to docker-engine-1.13.1.cs2-1.el7.centos.x86_64

Now the docker ps hangs are gone, but i still see the docker-containerd crash.

1: I want to know if this a known issue and what docker version fixes it ?
2: what additional information can i provide to facilitate debugging ?
3: i tried making docker-contaienrd a systemd service, but the docker-containerd gives me the following error now:

Aug 11 21:49:15 docker-containerd[13730]: time=“2017-08-11T21:49:15.606323962Z” level=error msg=“containerd: start container” error=“oci runtime error: container_linux.go:247: starting container process caused “process_linux.go:245: running exec setns process for init caused \“exit status 16\””\n” id=a215ca54c5b60c3795dd50686a89a868a45f6e08d902c43e396d39b31af3c72a

Any ideas on how to fix this ?