The issue isn't inside a container, for that matter lxd is completely
irrelevant here.

We're seeing that weird symlink loop happen randomly on xenial machines.
Normal users likely won't notice it though as they don't use that mountpoint, 
LXC users do though as LXC bind-mounts it into the container which fails 
miserably when it's an infinite loop of symlinks.

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https://bugs.launchpad.net/bugs/1555760

Title:
   Too many levels of symbolic links /proc/sys/fs/binfmt_misc

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