while it may be set up correctly and finally get it work, I'd not recommend anyone running this in production environment.
this option has been there many years ago and at that time chroot seems to be a hot-topic technology. but unfortunately it hasn't become popular at web server level. one weak point is difficult to set up and manage(at web server or virtual host level).
to separate users from each other and various security reasons, popular solution like WHM/cPanel, cloudlinux, OpenVZ, docker, is recommended in production environment. they have been working well and still popular with good community support to resolve various old or new issues from users.