This bug is still present in Ubuntu bionic.
To workaround it i had to edit the script /usr/lib/ipa/ipa-httpd-
pwdreader and replace "${HOSTNAME}" with $(hostname -f).
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I'm also affected by this bug.
Host: Ubuntu Xenial amd64 (all updates installed)
Containers: Multiple xenial containers, one privileged Trusty container.
Affected container: Unprivileged Trusty container (privileged works fine).
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