My problem was solved by:

1. Adding the following lines to the container config, then stopping and 
starting the container:
---
# Make snapd work
lxc.aa_profile = unconfined
# don't drop: mac_admin mac_override 
lxc.cap.drop = 
lxc.cap.drop = sys_time sys_module sys_rawio

lxc.hook.autodev = sh -c 'mknod -m 666 ${LXC_ROOTFS_MOUNT}/dev/fuse c 10 229'
---

2. Executing the following lines in the container:
---
apt install snapd squashfuse fuse # last one is necessary too!
mkdir -p /lib/modules
---

There can still be some intermittent apparmor errors during snap
installs, just trying again fixes them. I still wonder how it worked for
others out of the box.

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https://bugs.launchpad.net/bugs/1628289

Title:
  snapd should depend on squashfuse (for use in containers)

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