We figured it out, it's because the hooks are run inside the LXD snap
mntns which we modify to have our own copy of etc. snapctl then ends up
following a symlink in our modified /etc causing the issue.

Adding system-observe to the hook should do the trick.

** Changed in: snapd
       Status: New => Invalid

** Changed in: snapd (Ubuntu)
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/1863772

Title:
  apparmor missing read permission for /var/lib/snapd/hostfs/usr/lib/os-
  release

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