Comment 1 for bug 1844498

I have added two other packages to this bug.

livecd-rootfs - For the ubuntu-server and ubuntu-cpc projects a chroot hook should be added to create the lxd system group.

cloud-init - We have the suggestion that user creation should not initially create user groups that do not exist. You may consider adding a second pass in a final cloud-init module which would add groups for the default user which did not exist during the first pass (or create them if they still do not exist; and adding a mechanism for identifying system groups would be a good enhancement). This 2-stage approach would allow packages and snaps that get installed during boot (after cloud-init creates the default user) to create their own groups and manage them while ensuring the default user does get added to these.