Linux capabilities (setcap) seems to disable LD_LIBRARY_PATH

As already stated in other answers, this behavior is intended. There is some kind of workaround if you can compile (or at least link) the application yourself. Then you can pass -Wl,-rpath <yourDynamicLibraryPath> to gcc or -rpath <yourDynamicLibraryPath> to ld and you won’t have to specify LD_LIBRARY_PATH at all on execution.

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