Podman unable to mount local file into container

I'm planning to move away from Docker to Podman. I use docker-compose a lot so am planning to switch to podman-compose as well.

However I'm stuck at the simplest of podman examples, I can't seem to mount a volume onto my container? Obviously I'm doing something wrong however I cant figure out what it is.

My source file definitely exists on my (hardware) host (so not the podman machine). but I keep getting the error 'no such file or directory'.

Funny thing is if I manually create the same file locally on the podman machine (podman machine ssh --> touch /tmp/test.txt) it works perfectly fine.

Question is;

• should I (manually?) mount all my local files onto the Fedora VM (podman machine) so that in turn this Fedora mount can be used in my actual container? and if so, how do I do this?
• The podman run cmd below should work and there is something else I'm doing wrong?

$ ls -al /tmp/test.txt
-rw-r--r--  1 <username> <group> 10 Dec 8 13:33 /tmp/test.txt

$ podman run -it -v /tmp/test.txt:/tmp/test.txt docker.io/library/busybox
Error: statfs /tmp/test.txt: no such file or directory

$ podman run -it -v /tmp/test.txt:/tmp/test.txt:Z docker.io/library/busybox
Error: statfs /tmp/test.txt: no such file or directory

Additional information:

$ podman info --debug
host:
  arch: amd64
  buildahVersion: 1.23.1
  cgroupControllers:
  - memory
  - pids
  cgroupManager: systemd
  cgroupVersion: v2
  conmon:
    package: conmon-2.0.30-2.fc35.x86_64
    path: /usr/bin/conmon
    version: 'conmon version 2.0.30, commit: '
  cpus: 10
  distribution:
    distribution: fedora
    variant: coreos
    version: "35"
  eventLogger: journald
  hostname: localhost.localdomain
  idMappings:
    gidmap:
    - container_id: 0
      host_id: 1000
      size: 1
    - container_id: 1
      host_id: 100000
      size: 65536
    uidmap:
    - container_id: 0
      host_id: 1000
      size: 1
    - container_id: 1
      host_id: 100000
      size: 65536
  kernel: 5.15.6-200.fc35.x86_64
  linkmode: dynamic
  logDriver: journald
  memFree: 11733594112
  memTotal: 12538863616
  ociRuntime:
    name: crun
    package: crun-1.3-1.fc35.x86_64
    path: /usr/bin/crun
    version: |-
      crun version 1.3
      commit: 8e5757a4e68590326dafe8a8b1b4a584b10a1370
      spec: 1.0.0
      +SYSTEMD +SELINUX +APPARMOR +CAP +SECCOMP +EBPF +CRIU +YAJL
  os: linux
  remoteSocket:
    exists: true
    path: /run/user/1000/podman/podman.sock
  security:
    apparmorEnabled: false
    capabilities: CAP_CHOWN,CAP_DAC_OVERRIDE,CAP_FOWNER,CAP_FSETID,CAP_KILL,CAP_NET_BIND_SERVICE,CAP_SETFCAP,CAP_SETGID,CAP_SETPCAP,CAP_SETUID,CAP_SYS_CHROOT
    rootless: true
    seccompEnabled: true
    seccompProfilePath: /usr/share/containers/seccomp.json
    selinuxEnabled: true
  serviceIsRemote: true
  slirp4netns:
    executable: /usr/bin/slirp4netns
    package: slirp4netns-1.1.12-2.fc35.x86_64
    version: |-
      slirp4netns version 1.1.12
      commit: 7a104a101aa3278a2152351a082a6df71f57c9a3
      libslirp: 4.6.1
      SLIRP_CONFIG_VERSION_MAX: 3
      libseccomp: 2.5.3
  swapFree: 0
  swapTotal: 0
  uptime: 7h 9m 29.12s (Approximately 0.29 days)
plugins:
  log:
  - k8s-file
  - none
  - journald
  network:
  - bridge
  - macvlan
  volume:
  - local
registries:
  search:
  - docker.io
store:
  configFile: /var/home/core/.config/containers/storage.conf
  containerStore:
    number: 4
    paused: 0
    running: 0
    stopped: 4
  graphDriverName: overlay
  graphOptions: {}
  graphRoot: /var/home/core/.local/share/containers/storage
  graphStatus:
    Backing Filesystem: xfs
    Native Overlay Diff: "true"
    Supports d_type: "true"
    Using metacopy: "false"
  imageStore:
    number: 8
  runRoot: /run/user/1000/containers
  volumePath: /var/home/core/.local/share/containers/storage/volumes
version:
  APIVersion: 3.4.2
  Built: 1636748737
  BuiltTime: Fri Nov 12 20:25:37 2021
  GitCommit: ""
  GoVersion: go1.16.8
  OsArch: linux/amd64
  Version: 3.4.2