@@ -102,7 +102,9 @@ func newDaemonCLI(opts *daemonOptions) (*daemonCLI, error) {

 func (cli *daemonCLI) start(ctx context.Context) (err error) {

 	configureProxyEnv(ctx, cli.Config.Proxies)

-	configureDaemonLogs(cli.Config)

+	if err := configureDaemonLogs(ctx, cli.Config.DaemonLogConfig); err != nil {

+		return fmt.Errorf("failed to configure daemon logging: %w", err)

+	}

 	log.G(ctx).Info("Starting up")

@@ -965,15 +967,15 @@ func systemContainerdRunning(honorXDG bool) (string, bool, error) {

 // configureDaemonLogs sets the logging level and formatting. It expects

 // the passed configuration to already be validated, and ignores invalid options.

-func configureDaemonLogs(conf *config.Config) {

+func configureDaemonLogs(ctx context.Context, conf config.DaemonLogConfig) error {

 	switch conf.LogFormat {

 	case log.JSONFormat:

 		if err := log.SetFormat(log.JSONFormat); err != nil {

-			panic(err.Error())

+			return err

 		}

 	case log.TextFormat, "":

 		if err := log.SetFormat(log.TextFormat); err != nil {

-			panic(err.Error())

+			return err

 		}

 		if conf.RawLogs {

 			// FIXME(thaJeztah): this needs a better solution: containerd doesn't allow disabling colors, and this code is depending on internal knowledge of "log.SetFormat"

@@ -982,7 +984,7 @@ func configureDaemonLogs(conf *config.Config) {

 			}

 		}

 	default:

-		panic("unsupported log format " + conf.LogFormat)

+		return fmt.Errorf("unknown log format: %s", conf.LogFormat)

 	}

 	logLevel := conf.LogLevel

@@ -990,8 +992,9 @@ func configureDaemonLogs(conf *config.Config) {

 		logLevel = "info"

 	}

 	if err := log.SetLevel(logLevel); err != nil {

-		log.G(context.TODO()).WithError(err).Warn("configure log level")

+		log.G(ctx).WithError(err).Warn("configure log level")

 	}

+	return nil

 }

 func configureProxyEnv(ctx context.Context, cfg config.Proxies) {

@@ -198,17 +198,18 @@ func TestLoadDaemonConfigWithRegistryOptions(t *testing.T) {

 }

 func TestConfigureDaemonLogs(t *testing.T) {

-	conf := &config.Config{}

-	configureDaemonLogs(conf)

+	ctx := t.Context()

+	err := configureDaemonLogs(ctx, config.DaemonLogConfig{})

+	assert.NilError(t, err)

 	assert.Check(t, is.Equal(log.InfoLevel, log.GetLevel()))

 	// log level should not be changed when passing an invalid value

-	conf.LogLevel = "foobar"

-	configureDaemonLogs(conf)

+	err = configureDaemonLogs(ctx, config.DaemonLogConfig{LogLevel: "foobar"})

+	assert.NilError(t, err)

 	assert.Check(t, is.Equal(log.InfoLevel, log.GetLevel()))

-	conf.LogLevel = "warn"

-	configureDaemonLogs(conf)

+	err = configureDaemonLogs(ctx, config.DaemonLogConfig{LogLevel: "warn"})

+	assert.NilError(t, err)

 	assert.Check(t, is.Equal(log.WarnLevel, log.GetLevel()))

 }