Just to complete this thread and kind of mark it [SOLVED] I got
back to getting this script(s) to 99% work after losing my entire
primary BTRFS drive because some typo set my boot partition to
"zfs_volume" (yikes!)

https://raw.githubusercontent.com/netserva/sh/master/bin/setup-lxd

I know to the experts this is probably brainlessly simple but if
I had a working example like this months ago it would have saved
me a man-week of rtfm and testing... and a complete OS reinstall.

Thread summary and solution, lxd init itself accepts most of the
useful arguments so no need to independently add them in a script...

lxd init --auto \
  --network-address 12.34.56.78 \
  --network-port 8443 \
  --storage-backend zfs \
  --storage-create-loop 50 \
  --storage-pool lxd-pool \
  --trust-password changeme
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