I think you are hitting LP: #2046486. Can you please try with
security.nesting=true or lxd from latest/edge? Maybe latest/candidate or
even latest/stable is enough now: a latest comment to LP: #2046486 says
that the fix is "progressively rolled out to the `latest/stable` channel
now", and that was a few days ago.

** Changed in: autopkgtest (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/2076107

Title:
  "Timeout waiting for container to boot" for oracular armhf image

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