Not sure if this is an issue with container or with the t23_inline_container but:
Current Situation:
When translating container contents without t23_inline_container, the tx_container_parent field stores the default language parent ID.
Translated content appears as children of the default language container in the tx_t23inlinecontainer_elements field.
The container translation shows tx_t23inlinecontainer_elements as untranslated.
When adding new elements to tx_t23inlinecontainer_elements in the default language and translating them, existing translations are updated to a new tx_container_parent, which is now the translated container ID. This fixes the backend view.
Regardless of tx_container_parent, the frontend correctly renders translations.