Apparently the fixes we need should already be in the xenial  lxc
packages.  Could you please try (in one root terminal)

systemctl stop cgmanager

then see whether you're still able to start apps?

(If not, then in that terminal again do 'systemctl start cgmanager')

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https://bugs.launchpad.net/bugs/1544157

Title:
  lxc exec not working in xenial

Status in lxc package in Ubuntu:
  Fix Committed
Status in lxd package in Ubuntu:
  Fix Committed

Bug description:
  My host is on the very latest Xenial as of yesterday Feb9,2016

  My work flow has been...
  $ newgrp lxd
  $ lxc images:ubuntu/xenial/amd64 xen
  $ lxc start xen
  $ lxc exec xen -- /bin/bash

  at the moment, the image creation works, i can list my images - and it says 
they are running
  however, upon exec i'm not logged onto the shell - no output, even if i pass 
--verbose=true

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