Quoting Nilesh B. ([email protected]):
> Hi,
> I recently did fresh Ubuntu install with LXC.
> After starting container in non-daemon mode ($lxc-start -n trusty-raw) it
> showed errors and foreground process hangs.
> I am able to stop the container from another terminal.
> 
> Although the container starts in daemon mode ($lxc-start -n trusty-raw -l
> debug -o start_daemon.log) but after ssh and executing sudo command gave
> following error:
> sudo: effective uid is not 0, is /usr/bin/sudo on a file system with the
> 'nosuid' option set or an NFS file system without root privileges?

Can you give output of

cat /proc/self/mountinfo

Note that in the screen output you show, all looks fine.  There are console
msgs showing up, but I see a login prompt, and your container seems to have
booted up just fine.  So I'm just wondering about the sudo error.
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