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[Serge Hallyn <1543170@xxxxxxxxxxxxxxxxxx>]

This seems very similar to bug 1185364.

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https://bugs.launchpad.net/bugs/1543170

Title:
  lxc fails to install

Status in lxc package in Ubuntu:
  Triaged

Bug description:
  LXC in Xenial fails to install. Since this is a seed package for the
  cloud-images, cloud image builds are now broken.

  Setting up lxc (2.0.0~beta2-0ubuntu2) ...
  invoke-rc.d: unknown initscript, /etc/init.d/lxc not found.
  dpkg: error processing package lxc (--configure):
   subprocess installed post-installation script returned error exit status 100
  dpkg: dependency problems prevent configuration of lxc-templates:
   lxc-templates depends on lxc (>= 0.8.0~rc1-4ubuntu43); however:
    Package lxc is not configured yet.

  dpkg: error processing package lxc-templates (--configure):
   dependency problems - leaving unconfigured
  Setting up lxcfs (0.17-0ubuntu3) ...
  Running in chroot, ignoring request.
  All runlevel operations denied by policy
  invoke-rc.d: policy-rc.d denied execution of start.
  Setting up xz-utils (5.1.1alpha+20120614-2ubuntu2) ...
  update-alternatives: using /usr/bin/xz to provide /usr/bin/lzma (lzma) in auto mode
  dpkg: dependency problems prevent configuration of lxd:
   lxd depends on lxc; however:
    Package lxc is not configured yet.

  dpkg: error processing package lxd (--configure):

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