Comment 1 for bug 1573000

So I think the way to fix this is to remove the eth0.cfg template for xenial and forwards, and replace it with cloud-init networking configuration.

The template that lxd currently uses for eth0.cfg is http://paste.ubuntu.com/15963686/. I believe that this template can be replaced with:

version: 1
network:
    - type: physical
      name: eth0
      subnets:{% if config_get("user.network_mode", "") == "link-local" %}
        - type: manual{% else %}
        - type: dhcp
          control: auto{% endif %}

as a template for /var/lib/cloud/seed/nocloud-net/network-config.

stgraber thinks this looks good, so I've pushed it over to smoser/rharper to get their input.