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Update docker run flags for containized kubelet in hack/local-up-cluster.sh

**What this PR does / why we need it**:

I'm working on https://github.com/kubernetes/kubernetes/issues/61741, and found `docker run` flags in `hack/local-up-cluster.sh` for kubelet container is too old.

- /var/lib/docker should be mount read-write, because kubelet needs to
  update /etc/resolv.conf file in container, see #29378
- /var/lib/kubelet should be mount shared, because mountpoints under
  this directory must be propagated to other containers
- `--pid=host` is needed to run `nsenter --mount=/rootfs/proc/1/ns/mnt -- /usr/bin/systemd-run --scope` correctly (don't know exact reason, but with `--pid=host`, it works)
- configure cluster dns for kubelet running in a container
- should propagate sub-mounts of / to kubelet for local volume

With this fix, we can start a local cluster with containerized kubelet.

```
# pull or build a hyperkube image first
docker tag k8s.gcr.io/hyperkube-amd64:<tag> k8s.gcr.io/kubelet:latest
export DOCKERIZE_KUBELET=y
./hack/local-up-cluster.sh
```

**Which issue(s) this PR fixes** *(optional, in `fixes #<issue number>(, fixes #<issue_number>, ...)` format, will close the issue(s) when PR gets merged)*:
Fixes #

**Special notes for your reviewer**:

refer to: https://github.com/kubernetes/kubernetes-anywhere/blob/master/phase2/ignition/vanilla/kubelet.service.

**Release note**:

```release-note
NONE
```