What is the workaround for LXD-nested pivileged docker (/dev/.lxc/proc/ error)?

Per Stephane Graber (LXD lead developer) you don’t need the LXD docker profile any more !

See… https://github.com/lxc/lxd/issues/3299

Just to clean this up a bit, this is solved quite nicely (as @bmullan points out).

16.04, lxd version 2.21, the following sequence works:

lxc launch ubuntu-daily:xenial xenial
lxc config set xenial security.nesting true
lxc exec xenial snap install docker
lxc exec xenial docker run ubuntu ls

The docker.io package, and the docker snap both work, but are different versions, and have different update policies, etc. The snap version used above is 17.06.2-ce, while the docker.io package in xenial is 1.13.1.