I am not sure what you mean by "fresh Ubuntu 16.04 instance on Windows
10".

do you mean you used Ubuntu app from the Windows store?
You used virtualbox / vmware / hyper-v virtualisation on Windows?

I understand that windows 10 itself is running in a virtualbox machine,
on top of Mac OS. But I need to also understand which virtualisation
technology is used to perform the nesting to do the jump from Windows to
Ubuntu.

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https://bugs.launchpad.net/bugs/1748659

Title:
  Windows 10 Ubuntu 16.04 upgrade to 18.04: package systemd 235-3ubuntu3
  failed to install/upgrade: installed systemd package post-installation
  script subprocess returned error exit status 1

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