The problem in your case is that you're trying to get this to work with
LXC rather than LXD.

LXD images ship with a /lib/modules directory, ship with fuse pre-
installed, LXD sets up /dev/fuse by default for you and comes with
apparmor namespacing support so the container can load apparmor profiles
properly.

I'd very strongly recommend against anyone using the configuration above
with LXC as the lxc.aa_profile=unconfined part, combined with retaining
mac_admin and mac_override will cause snapd to overwrite apparmor
profiles of the host.

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

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

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