Here's a reproducer with ancient amd64 images:

$ lxc launch ubuntu:ffae848ee5a0 tstf
Creating tstf

$ lxc exec tstf bash
root@tstf:~# cat /etc/fstab
LABEL=cloudimg-rootfs   /        ext4   defaults        0 0
root@tstf:~# cat /etc/cloud/build.info
build_name: server
serial: 20200529.1
root@tstf:~# systemctl list-units --failed
  UNIT                       LOAD   ACTIVE SUB    DESCRIPTION
● systemd-remount-fs.service loaded failed failed Remount Root and Kernel File 
Systems

LOAD   = Reflects whether the unit definition was properly loaded.
ACTIVE = The high-level unit activation state, i.e. generalization of SUB.
SUB    = The low-level unit activation state, values depend on unit type.

1 loaded units listed.

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https://bugs.launchpad.net/bugs/2089380

Title:
  focal lxd containers boot in degraded state

Status in Auto Package Testing:
  Invalid
Status in cloud-images:
  Confirmed

Bug description:
  Looks like Focal instances boot in degraded state because the
  following systemd unit fails:

  root@paride-test:~# systemctl status systemd-remount-fs.service
  ● systemd-remount-fs.service - Remount Root and Kernel File Systems
       Loaded: loaded (/lib/systemd/system/systemd-remount-fs.service; 
enabled-runtime; vendor preset: enabled)
       Active: failed (Result: exit-code) since Fri 2024-11-22 11:29:21 UTC; 
53s ago
         Docs: man:systemd-remount-fs.service(8)
               https://www.freedesktop.org/wiki/Software/systemd/APIFileSystems
      Process: 60 ExecStart=/lib/systemd/systemd-remount-fs (code=exited, 
status=1/FAILURE)
     Main PID: 60 (code=exited, status=1/FAILURE)

  Nov 22 11:29:21 paride-test systemd-remount-fs[71]: mount: /: can't find 
LABEL=cloudimg-rootfs.
  Nov 22 11:29:21 paride-test systemd-remount-fs[60]: /bin/mount for / exited 
with exit status 1.
  Nov 22 11:29:21 paride-test systemd[1]: systemd-remount-fs.service: Main 
process exited, code=exited, status=1/FAILURE
  Nov 22 11:29:21 paride-test systemd[1]: systemd-remount-fs.service: Failed 
with result 'exit-code'.
  Nov 22 11:29:21 paride-test systemd[1]: Failed to start Remount Root and 
Kernel File Systems.
  Warning: journal has been rotated since unit was started, output may be 
incomplete.

  We should figure out why this happens, and make instances boot again
  in 'running' state.

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