Air is a mixture of oxygen, nitrogen, carbondioxide, etc.
So it cannot have the same volume as the Containers volume.
Sure it can, sure it does - by definition gas occupies all available volume, OP is perfectly right.
However, it doesn't mean all gases in the mixture have the same partial pressure. So, each gas occupies full volume of the container, but has a different partial pressure.
When we say "20% by volume" we mean "as if the gas was kept at the same pressure as other mixture components".
So, 20% by volume of oxygen in the air means if you have 1L of the air at 1atm you can think about it as if it was a mixture prepared by using 0.2L of oxygen at 1atm with (approximately) 0.8L of nitrogen at 1atm. The real 1L of air contains 1L of oxygen at the partial pressure of 0.2atm and 1L of nitrogen at the partial pressure 0.8atm.
And yes, if you take PV=nRT you will find the PV part is the same no matter whether you take 0.2L of oxygen at 1atm or 1L of oxygen at 0.2atm. That's why expressing composition as volume percentages works.