How to configure daemon.json for drone-runner-docker?

I noticed that drone-plugins/drone-docker has a squash parameter, but this parameter requires docker daemon to enable experimental.

I set { "experimental": true } on the host, but drone still prints Squash build flag is only available when Docker deamon is started with experimental flag. Ignoring....

I think this is related to drone-runner-docker, how to configure daemon.json for drone-runner-docker?

The docker plugin uses docker-in-docker which means a docker daemon is launched inside the plugin container at runtime. If you want to use an experimental feature, you would add experimental: true to the settings, which in turn instructs the plugin to start the docker-in-docker daemon with the experimental flag [1]

kind: pipeline
type: docker
name: default

steps:
  - name: build
    image: plugins/docker
    settings:
      repo: octocat/hello-world
      tags: latest
+     experimental: true

[1] https://github.com/drone-plugins/drone-docker/blob/master/docker.go#L379

This is what I initially tried, and it didn’t work at all.

When I set it like this, I get Squash build flag is only available when Docker deamon is started with experimental flag..

I would recommend taking a look at the source code as a next step. You can test and debug plugins directly from the command line (as shown here) and then submit a patch if you make any improvements.