I can't start pod which requires privileged security context. PodSecurityPolicy:

apiVersion: policy/v1beta1
kind: PodSecurityPolicy
metadata:
  name: pod-security-policy
spec:
  privileged: true
  allowPrivilegeEscalation: true
  readOnlyRootFilesystem: false
  allowedCapabilities:
  - '*'
  allowedProcMountTypes:
  - '*'
  allowedUnsafeSysctls:
  - '*'
  volumes:
  - '*'
  hostPorts:
  - min: 0
    max: 65535
  hostIPC: true
  hostPID: true
  hostNetwork: true
  runAsUser:
    rule: 'RunAsAny'
  seLinux:
    rule: 'RunAsAny'
  supplementalGroups:
    rule: 'RunAsAny'
  fsGroup:
    rule: 'RunAsAny'

ClusterRole:

apiVersion: rbac.authorization.k8s.io/v1
kind: ClusterRole
metadata:
  name: privileged
rules:
- apiGroups:
  - '*'
  resourceNames:
  - pod-security-policy
  resources:
  - '*'
  verbs:  
  - '*'

ClusterRoleBinding:

apiVersion: rbac.authorization.k8s.io/v1
kind: ClusterRoleBinding
metadata:
  name: privileged-role-binding
roleRef:
  kind: ClusterRole
  name: privileged
  apiGroup: rbac.authorization.k8s.io
subjects:
# Authorize specific service accounts:
- kind: ServiceAccount
  name: default 
  namespace: kube-system
- kind: ServiceAccount
  name: default 
  namespace: default 
- kind: Group
#  apiGroup: rbac.authorization.k8s.io
  name: system:authenticated
# Authorize specific users (not recommended):
- kind: User
  apiGroup: rbac.authorization.k8s.io
  name: admin

$ k auth can-i use psp/pod-security-policy
Warning: resource 'podsecuritypolicies' is not namespace scoped in group 'extensions'
yes
$ k apply -f daemonset.yml 
The DaemonSet "daemonset" is invalid: spec.template.spec.containers[0].securityContext.privileged: Forbidden: disallowed by cluster policy

Not sure if it is needed but I have added PodSecurityContext to args/kube-apiserver --enable-admission-plugins

Any advice and insight is appreciated. WTF is this: "It looks like your post is mostly code; please add some more details." !?!