neondocker script requires three packages in order to be able to work: ruby-dev, ruby-docker-api and xserver-xephyr. Without the first two of them, the script simply doesn't work. Without the third, it can't create an X window to show desktop in.
And, of course, docker.io needs to be installed too.
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Turns out the reason the dependencies are not there is because neondocker is by default part of the ISO, we do however not want docker as part of the ISO. So this actually needs on-demand installation support added to neondocker.