This bug was fixed in the package lxd - 2.0.0~rc2-0ubuntu2

---------------
lxd (2.0.0~rc2-0ubuntu2) xenial; urgency=medium

  * Cherry-pick upstream bugfix:
    - Workaround kernel overmounting protection (LP: #1551854)

 -- Stéphane Graber <stgra...@ubuntu.com>  Mon, 07 Mar 2016 22:18:32
-0500

** Changed in: lxd (Ubuntu)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1551854

Title:
  LXD bootstrap issues on xenial

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