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[Launchpad Bug Tracker <1709536@xxxxxxxxxxxxxxxxxx>]

This bug was fixed in the package systemd - 229-4ubuntu20

---------------
systemd (229-4ubuntu20) xenial; urgency=medium

  * resolved: recognize DNS names with more than one trailing dot as invalid
    (LP: #1600000)
  * Ignore failures to set Nice priority on services in containers.
    (LP: #1709536)
  * networkd: accept `:' in ifnames in systemd/networkd. (LP: #1714933)
  * initramfs-tools: trigger udevadm add actions with subsystems first.
    (LP: #1713536)
  * networkd: Add support to set STP value on a bridge. (LP: #1665088)
  * networkd: add support for AgeingTImeSec, Priority and DefaultPVID settings.
    (LP: #1715131)
    - Drop cherrypick of uint16 config parser, superseeded by above commit.
  * networkd: add support to set ActiveSlave and PrimarySlave. (LP: #1709135)
    - networkd: add support to configure ARP, depedency of Primary/ActiveSlave.

 -- Dimitri John Ledkov <xnox@xxxxxxxxxx>  Tue, 05 Sep 2017 14:01:51
+0100

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

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https://bugs.launchpad.net/bugs/1709536

Title:
  snapd 2.26.14 on ubuntu-core won't start in containers anymore

Status in Snap Layer:
  New
Status in snapd:
  New
Status in systemd package in Ubuntu:
  Fix Released
Status in systemd source package in Xenial:
  Fix Released
Status in systemd source package in Artful:
  Fix Released

Bug description:
  [Impact]

  Systemd treats a failure to apply the requested Nice value as critical
  to unit startup.

  Unprivileged LXD containers do not allow the use of negative nice
  values. snapd will fail to start inside containers now that snapd uses
  a negative Nice value.

  Aug 09 05:54:37 core systemd[1]: snapd.service: Main process exited, code=exited, status=201/NICE
  Aug 09 05:54:37 core systemd[1]: snapd.service: Unit entered failed state.
  Aug 09 05:54:37 core systemd[1]: snapd.service: Failed with result 'exit-code'.

  The fix is for systemd to ignore permission errors when attempting to
  setup such custom nice values in containers.

  I have confirmed that setting up a unit override by hand which sets
  Nice = 0 does resolve the problem.

  [Test Case]

  Boot a Xenial image in lxd:

  $ lxc launch xenial x1
  $ lxc exec x1 -- systemctl --state=failed

  Observe failures for snapd :

  ● snapd.service loaded failed failed Snappy daemon
  ● snapd.socket loaded failed failed Socket activation for snapp

  Install updated systemd from -proposed and get status: (lxc exec
  <container> reboot; lxc exec <container> systemctl status)

  State: running
  Jobs: 0 queued
  Failed: 0 units

  [Regression Potential]

  Services will now run with a Nice value other than what was specified
  in the unit if it cannot be changed for some reason.

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