LXD doesn't set the hostname (well, it sets the kernel utsname but
that's overridden by the hostname).

Instead LXD just feeds metadata to cloud-init which is then responsible for 
setting the hostname.
The problem is that cloud-init runs after network was brought up, so the 
hostname is incorrect at the time of the initial dhcp request.

A container reboot solves it, so would cloud-init setting the hostname
before network is brought up or so would systemd re-starting the dhcp
client after changing the hostname.

It could be that some of this problem is somehow resolved with recent
cloud-init and the network config code but I'm sure Scott can tell us
for sure :)

** Package changed: lxd (Ubuntu) => cloud-init (Ubuntu)

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https://bugs.launchpad.net/bugs/1600766

Title:
  initial dhcp has default hostname of ubuntu

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