The fix has been merged into systemd via:
https://github.com/systemd/systemd/pull/3676

It appears this was not a libvirt problem and the systemd 'invalid' tag
is incorrect.

Has anyone already created a systemd issue to get it updated with this
patch (I didn't find any)?

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https://bugs.launchpad.net/bugs/1529079

Title:
  Can't start virtual machines with installed systemd-container package
  on Xenial

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