OK, so for anyone hitting this error until there may be a fix: For cases where snapd is not needed (and perhaps purged later), and orchestration relies on cloud-init to finish, the workaround in the container is:
systemctl stop snapd.seeded.service
or on the host:
lxc exec $CONTAINERNAME -- systemctl stop snapd.seeded.service
OK, so for anyone hitting this error until there may be a fix: For cases where snapd is not needed (and perhaps purged later), and orchestration relies on cloud-init to finish, the workaround in the container is:
systemctl stop snapd.seeded. service
or on the host:
lxc exec $CONTAINERNAME -- systemctl stop snapd.seeded. service