Comment 39 for bug 1628289

Responding to comments #36 and #37, I can confirm that a xenial container (x1) in a xenial host can install snaps after you install squashfuse.

Without squashfuse:
root@x1:~# snap install hello-world
error: cannot perform the following tasks:
- Mount snap "core" (3247) ([start snap-core-3247.mount] failed with exit status 1: Job for snap-core-3247.mount failed. See "systemctl status snap-core-3247.mount" and "journalctl -xe" for details.
)

With squashfuse:
(...)
Preparing to unpack .../squashfuse_0.1.100-0ubuntu1~ubuntu16.04.1_amd64.deb ...
Unpacking squashfuse (0.1.100-0ubuntu1~ubuntu16.04.1) ...
Processing triggers for man-db (2.7.5-1) ...
Setting up squashfuse (0.1.100-0ubuntu1~ubuntu16.04.1) ...
root@x1:~# snap install hello-world
hello-world 6.3 from 'canonical' installed
root@x1:~#