CloudLinux and CageFS integration is available from CyberPanel v1.8.6. However, before using CageFS you need to be on CloudLinux OS. So before moving forward convert your CyberPanel server to CloudLinux.
What is CageFS?
From the official documentation:
CageFS is a virtualized, per-user file system that uniquely encapsulates each customer, preventing users from seeing each other and viewing sensitive information. CageFS prevents a large number of attacks, including most privilege escalation and information disclosure attacks. It is completely transparent to your customers, without any need for them to change their scripts.
So now when you create any website, you can enable CageFS on the website user, that user will then see virtualized file system.
How to enable CageFS for users?
To manage your CageFS settings, navigate to -> https://< Server IP Address>:8090/CloudLinux/CageFS
There you can Enable/Disable CageFS for individual sites/users. You can also toggle the default status. For example, if the default is set to ON, any newly created site users will have CageFS enabled by default.