error: system does not fully support snapd: cannot mount squashfs image using 
"squashfs": mount:
       /tmp/sanity-mountpoint-913738666: mount failed: Operation not permitted.

This looks odd, snapd should know to use snapfuse in such environments.

Can you show "lxc config show --expanded" of such a container if you're
still hitting this issue?

** Changed in: lxd (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/1936985

Title:
  package lxd 3.0.3-0ubuntu1~18.04.1 failed to install/upgrade: new lxd
  package pre-installation script subprocess returned error exit status
  1

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