I also see this on a 20.04 host with a 20.04 container.
$ lxc version
Client version: 5.0.2
Server version: 5.0.2
$ lxc launch ubuntu:20.04 foo
$ lxc stop foo
$ lxc config set foo security.nesting true
$ lxc start foo
$ lxc shell foo
root@foo:~# snap install firefox
error: cannot perform the
** Also affects: snapd
Importance: Undecided
Status: New
** Also affects: lxd
Importance: Undecided
Status: New
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Status changed to 'Confirmed' because the bug affects multiple users.
** Changed in: firefox (Ubuntu)
Status: New => Confirmed
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