@stgraber The "weird adt environment" is the autopkgtest infra we use
for gating packages to prevent regressions sneaking in to the release
pocket. LXD is not a .deb package but a snap so we can't gate
regressions as part of the standard Ubuntu classic process, but at the
moment it is somehow part of the snaps installed on images by default.

The reason for adding the tests-in-lxd test to systemd is to ensure that
new systemd versions work well running LXD and being installed in LXD
container at the same time. Upstream changes frequently introduce LXC
specific minor regressions thus I believe this test helps making the
user experience better.

If you see something in the aforementioned new test that is not expected
to work, please state that. Otherwise please triage the failure that we
are observing consistently on the autopkgtest infra.

The easiest way of reproducing the problem is clicking on the "♻" links on this 
page:
http://autopkgtest.ubuntu.com/packages/systemd/groovy/amd64

I agree with @xnox that snapd.seeding must not block boot indefinitely
and I also believe that snap upstreams (LXD here) most ensure fixing
problems affecting Ubuntu classic to have the privilege of being seeded
on images.

Shipping LXD as a .deb would also resolve the problem it is causing here
by being a snap to be seeded inside the LXC container and the
autopkgtest infra could gate LXD regressions again.

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https://bugs.launchpad.net/bugs/1878225

Title:
  Please remove lxd.snap from lxd images, as it fails to seed thus
  failing the first boot - snapd.seeded.service waits forever (?) to
  have snaps seeded in LXD on s390x and arm64

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