Perhaps the "already in use" message being printed is a bug in the error reporting on not finding the dnsmasq.conf file?
Please comment out that line in /etc/default/lxc-net, and let us know whether that helps.
Perhaps the "already in use" message being printed is a bug in the error reporting on not finding the dnsmasq.conf file?
Please comment out that line in /etc/default/ lxc-net, and let us know whether that helps.