+Vivek
I don't know the exact bug here, but one possibility is that since you've disabled the auto-extend, that it's leaving the metadata size at it's default? There is indeed a relationship between the two and I did a lot of testing around it to make sure we were not going to hit what you've hit :-/ At that time however, we did not have the auto-extend feature.
So I think you may have found a situation where we need METADATA_SIZE=N but you said you set that at 2%?
Can you paste the output of "docker info" and "lsblk" please?
From April 2015 when I last looked at this, the tests ran were to start 1000 httpd containers and measure the thinpool used size. Here:
So, for 1000 rhel7+httpd containers, on-disk it was using about 3GB (left-Y-axis).
And the metadata consumed was about 50MB (right-Y-axis).
You can see we concluded to set metadata @ 0.1% of the data partition size, which in the case:
I am wondering what your docker info will say.