Found a thread that might be relevant: 
https://forum.snapcraft.io/t/cannot-check-or-enable-fips-mode-on-rhel8/43269

The snapd on this testing node here is 2.65.3+24.04, probably need to
wait for 2.66

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https://bugs.launchpad.net/bugs/2089662

Title:
  ubuntu_overlayfs_smoke_test failed when trying to install lxd snap
  (cannot check or enable FIPS mode) on N-fips

Status in ubuntu-kernel-tests:
  New

Bug description:
  When trying to install lxd snap on N-fips, N-azure-fips and N-gcp-
  fips.

  The attempt will fail with:
  $ sudo snap install lxd
  cannot check or enable FIPS mode: readlink /snap/snapd/current: no such file 
or directory

  Even the `snap list` is not working:
  $ sudo snap list
  cannot check or enable FIPS mode: readlink /snap/snapd/current: no such file 
or directory

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