Downgrading in the container and the hub virtualenv works for me
/opt/tljh/hub/bin/pip3 install --upgrade 'SQLAlchemy<2.0.0'
Jan 30 15:13:44 1a4911f9df26 systemd[1]: Started jupyterhub.service.
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.611 JupyterHub app:2480] Running JupyterHub version 1.5.1
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.611 JupyterHub app:2510] Using Authenticator: firstuseauthenticator.firstuseauthenticator.FirstUseAuthenticator
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.611 JupyterHub app:2510] Using Spawner: traitlets.traitlets.UserCreatingSpawner-5.9.0
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.611 JupyterHub app:2510] Using Proxy: jupyterhub_traefik_proxy.toml.TraefikTomlProxy-0+unknown
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.618 JupyterHub app:1554] Loading cookie_secret from /opt/tljh/state/jupyterhub_cookie_secret
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.680 alembic.runtime.migration migration:205] Context impl SQLiteImpl.
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.680 alembic.runtime.migration migration:208] Will assume non-transactional DDL.
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.694 alembic.runtime.migration migration:205] Context impl SQLiteImpl.
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.694 alembic.runtime.migration migration:208] Will assume non-transactional DDL.
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.796 JupyterHub app:1858] Not using allowed_users. Any authenticated user will be allowed.
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.889 JupyterHub app:2547] Initialized 0 spawners in 0.003 seconds
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.892 JupyterHub app:2760] Not starting proxy
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.893 JupyterHub app:2796] Hub API listening on http://127.0.0.1:15001/hub/
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.893 JupyterHub app:2811] Starting managed service cull-idle
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.893 JupyterHub service:339] Starting service 'cull-idle': ['/opt/tljh/hub/bin/python3', '-m', 'jupyterhub_idle_culler', '--timeout=600', '--cull-every=60', '--concurrency=5', '--max-age=0']
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.897 JupyterHub service:121] Spawning /opt/tljh/hub/bin/python3 -m jupyterhub_idle_culler --timeout=600 --cull-every=60 --concurrency=5 --max-age=0
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.904 JupyterHub proxy:347] Checking routes
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.904 JupyterHub proxy:432] Adding route for Hub: / => http://127.0.0.1:15001
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.906 JupyterHub proxy:135] Waiting for / to register with traefik
Jan 30 15:13:45 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:45.914 JupyterHub app:2871] JupyterHub is now running at http://:8000
Jan 30 15:13:46 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:46.054 JupyterHub log:189] 200 GET /hub/api/ (cull-idle@127.0.0.1) 13.34ms
Jan 30 15:13:46 1a4911f9df26 python3[2829]: [I 2023-01-30 15:13:46.064 JupyterHub log:189] 200 GET /hub/api/users?state=[secret] (cull-idle@127.0.0.1) 7.59ms