I think I found the culprit. When installing from ISO it installs HWE kernel.
LXD 5.21 LTS uses the Virtio GPU by default but the ubuntu:22.04 image uses 5.15 generic kernel which does not have virtio_gpu driver ubuntu@desktop-jammy-vm:~$ lshw -C display WARNING: you should run this program as super-user. *-display description: VGA compatible controller product: Virtio GPU vendor: Red Hat, Inc. physical id: 0 bus info: pci@0000:04:00.0 version: 01 width: 64 bits clock: 33MHz capabilities: vga_controller bus_master cap_list rom configuration: driver=virtio-pci latency=0 resources: iomemory:80-7f irq:21 memory:80000000-807fffff memory:800300000-800303fff memory:80800000-80800fff memory:c0000-dffff *-graphics product: EFI VGA physical id: 1 logical name: /dev/fb0 capabilities: fb configuration: depth=32 resolution=1280,800 WARNING: output may be incomplete or inaccurate, you should run this program as super-user. The way out of this situation is to install HWE kernel $ apt install -y linux-virtual-hwe-22.04 and reboot -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/2098014 Title: spice-vdagent seems not to be working in jammy when connecting from noble To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/spice-vdagent/+bug/2098014/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs