There is a bug in the /etc/apparmor.d/abstractions/libvirt-qemu file on
line 183

  /sys/devices/system/cpu/cpu*/online r

is missing the the trailing ,
it should be
  /sys/devices/system/cpu/cpu*/online r,

this prevents libvirt from loading the vm profile. Unfortunately it does
not report the error and only fails/reports the error when it attempts
to transition to the profile that failed being loaded.

Once the abstraction is fixed nested kvm works as expected for me.

I have not tried this with an lxd container yet

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https://bugs.launchpad.net/bugs/1686621

Title:
  Can't change libvirt profile on guest start in artful

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