Hi Anvitha,
I'm really only familiar w/ the contained side of things (I'll get to Docker...bear with me), but w/ containerd you need...
3) an optional file w/ runsc flags set
Then your pods specs are annotated w/ runtimeClassName: gvisor
The names on all of the above need to be consistent, so the kind, the entry in containerd, and the annotation must be the same.
So for your docker example, I'm guessing what is missing is 2), and that error message looks like that's what's missing. 2) acutally tells the cluster which nodes can handle the runtimeClass.
Are you working w/ "Docker Engine" or how is your system setup? Can you point me to documentation you're looking at for your general setup?
Zach