Thank you for the comment, apologies for my late reply.

I think it was disconnected loop device file that I initially configured
with lxd init. loop image was disconnected (perhaps by apt update or my
activity) and when I was looking to get lxd / lxc service running up I
missed the original lxd storage setup was using a loop image. I went
wrong direction removing and installing lxd - instead of bringing back
the storage environment

losetup -f
sudo losetup /dev/loop0 /srv/lxd/disk.img 
sudo zpool list
sudo zpool create -f myfirstpool /dev/loop0
sudo zpool list
mount | grep myfirst

so first try with lxd and I have since this bug report continued
successfully lxd zfs storage on block devices.

** Attachment added: "journalctl_1.txt"
   
https://bugs.launchpad.net/ubuntu/+source/lxd/+bug/1778992/+attachment/5162085/+files/journalctl_1.txt

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Title:
  lxd 2.21 fails to install

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