After a long and fruitless digging around systemd unit and seed.loaded I
have removed (purged) and installed snapd package and it fixed this
issue for me.

Something along the lines of:
$ sudo apt purge snapd
$ sudo apt install snapd
$ sudo snap install core

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https://bugs.launchpad.net/bugs/1828500

Title:
  snapd fails always in  Optimised Ubuntu Desktop images available in
  Microsoft Hyper-V gallery

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