i can also confirm this. i noticed it when an update for open-iscsi came
along and i tried to update the container:

Setting up open-iscsi (2.0.873+git0.3b4b4500-14ubuntu8.2) ...
Job for open-iscsi.service failed because the control process exited with error 
See "systemctl status open-iscsi.service" and "journalctl -xe" for details.
invoke-rc.d: initscript open-iscsi, action "start" failed.
● open-iscsi.service - Login to default iSCSI targets
   Loaded: loaded (/lib/systemd/system/open-iscsi.service; enabled; vendor 
preset: enabled)
   Active: failed (Result: exit-code) since Fri 2017-01-13 11:35:10 UTC; 16ms 
     Docs: man:iscsiadm(8)
  Process: 4334 ExecStartPre=/bin/systemctl --quiet is-active iscsid.service 
(code=exited, status=3)

Jan 13 11:35:10 testi systemd[1]: open-iscsi.service: Failed to reset 
devices.list: Operation not permitted
Jan 13 11:35:10 testi systemd[1]: Starting Login to default iSCSI targets...
Jan 13 11:35:10 testi systemd[1]: open-iscsi.service: Control process exited, 
code=exited status=3
Jan 13 11:35:10 testi systemd[1]: Failed to start Login to default iSCSI 
Jan 13 11:35:10 testi systemd[1]: open-iscsi.service: Unit entered failed state.
Jan 13 11:35:10 testi systemd[1]: open-iscsi.service: Failed with result 

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Touch seeded packages, which is subscribed to lvm2 in Ubuntu.

  fails in lxd container

Status in lvm2 package in Ubuntu:
Status in lxd package in Ubuntu:
Status in open-iscsi package in Ubuntu:
Status in systemd package in Ubuntu:

Bug description:
  The ubuntu:xenial image shows 'degraded' state in lxd on initial boot.

  $ lxc launch xenial x1
  $ sleep 10
  $ lxc file pull x1/etc/cloud/build.info -
  build_name: server
  serial: 20160420-145324

  $ lxc exc x1 systemctl is-system-running

  $ lxc exec x1 systemctl --state=failed
    UNIT                          LOAD   ACTIVE SUB    DESCRIPTION
  ● dev-hugepages.mount           loaded failed failed Huge Pages File System
  ● iscsid.service                loaded failed failed iSCSI initiator daemon 
  ● open-iscsi.service            loaded failed failed Login to default iSCSI 
  ● systemd-remount-fs.service    loaded failed failed Remount Root and Kernel 
File Systems
  ● systemd-sysctl.service        loaded failed failed Apply Kernel Variables
  ● lvm2-lvmetad.socket           loaded failed failed LVM2 metadata daemon 
  ● systemd-journald-audit.socket loaded failed failed Journal Audit Socket

  LOAD   = Reflects whether the unit definition was properly loaded.
  ACTIVE = The high-level unit activation state, i.e. generalization of SUB.
  SUB    = The low-level unit activation state, values depend on unit type.

  7 loaded units listed. Pass --all to see loaded but inactive units, too.
  To show all installed unit files use 'systemctl list-unit-files'.

  ProblemType: Bug
  DistroRelease: Ubuntu 16.04
  Package: open-iscsi 2.0.873+git0.3b4b4500-14ubuntu3
  ProcVersionSignature: Ubuntu 4.4.0-18.34-generic 4.4.6
  Uname: Linux 4.4.0-18-generic x86_64
  ApportVersion: 2.20.1-0ubuntu2
  Architecture: amd64
  Date: Thu Apr 28 17:28:04 2016
   PATH=(custom, no user)
  SourcePackage: open-iscsi
  UpgradeStatus: No upgrade log present (probably fresh install)

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