Comment 5 for bug 1560685

Serge,

$ ps -ef | grep docker
root 1387 1 0 07:44 ? 00:00:10 /usr/bin/docker daemon -H fd://
mbruzek 6392 18048 0 21:27 pts/19 00:00:00 grep --color=auto docker
100000 31515 28211 0 21:21 ? 00:00:00 /usr/bin/docker daemon -H fd://

$ dpkg -l | grep docker
ii docker.io 1.10.2-0ubuntu4 amd64 Linux container runtime
rc lxc-docker-1.10.0-dev 1.10.0~dev~git20151104.194544.0.0cdc96c amd64 Linux container runtime
rc lxc-docker-1.8.0-dev 1.8.0~dev~git20150811.005309.0.ca8f246 amd64 Linux container runtime
rc lxc-docker-1.9.0-dev 1.9.0~dev~git20151029.220813.0.2eaa25d amd64 Linux container runtime

$ cat /proc/filesystems
nodev sysfs
nodev rootfs
nodev ramfs
nodev bdev
nodev proc
nodev cpuset
nodev cgroup
nodev tmpfs
nodev devtmpfs
nodev debugfs
nodev tracefs
nodev securityfs
nodev sockfs
nodev bpf
nodev pipefs
nodev devpts
        ext3
        ext2
        ext4
nodev hugetlbfs
        vfat
nodev ecryptfs
        fuseblk
nodev fuse
nodev fusectl
nodev pstore
nodev mqueue
nodev autofs
nodev zfs
nodev binfmt_misc
nodev aufs
nodev overlayfs
nodev overlay

$ uname -a
Linux warhorse 4.4.0-13-generic #29-Ubuntu SMP Fri Mar 11 19:31:18 UTC 2016 x86_64 x86_64 x86_64 GNU/Linux

In an email you asked further questions:

> Can you tell us the background of the host? Is it a clean newly installed machine or vm?

My own development system upgraded to 16.04 from 15.04.

> How was lxd installed?

lxd was installed from the archive.
dpkg -l | grep lxd
ii lxd 2.0.0~rc4-0ubuntu1 amd64

> How was docker.io installed in the container?

First I got into the container `lxc exec xenial /bin/bash`
I installed docker.io with `apt-get update && apt-get install docker.io`.
Running `docker info` shows the aufs driver selected
Storage Driver: aufs
 Root Dir: /var/lib/docker/aufs
 Backing Filesystem: extfs

> Can you easily reproduce this with the same iso (or whatever you used) for the host?

Yes this is still reproducible on my system. The steps are:
$ lxc launch images:ubuntu/xenial/amd64 xenial -p default -p docker
$ lxc exec xenial /bin/bash
# apt-get update && apt-get install -y docker.io
# docker info
# docker run hello-world
Unable to find image 'hello-world:latest' locally
latest: Pulling from library/hello-world
03f4658f8b78: Pull complete
a3ed95caeb02: Pull complete
Digest: sha256:8be990ef2aeb16dbcb9271ddfe2610fa6658d13f6dfb8bc72074cc1ca36966a7
Status: Downloaded newer image for hello-world:latest
docker: Error response from daemon: error creating aufs mount to /var/lib/docker/aufs/mnt/e174f7d65f4b75fd5f1ea763a3f74cd13bf43ed68cb22b594d5b142b7201ca8c-init: operation not permitted.
See 'docker run --help'.