This bug was fixed in the package snapd - 2.16+16.10ubuntu1

---------------
snapd (2.16+16.10ubuntu1) yakkety; urgency=medium

  * systemd/systemd.go, systemd/systemd_test.go: Correct the mount arguments
    when mounting with squashfuse (LP: #1630789)

 -- Tyler Hicks <tyhi...@canonical.com>  Thu, 06 Oct 2016 18:49:40 +0000

** Changed in: snapd (Ubuntu)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1630789

Title:
  normal users can't run snaps inside of LXD containers

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