Tested with Serge and confirmed to be a bug in LXC's Ubuntu template.

The generated "fstab" contains:
devpts          /var/lib/lxc/drupal01/rootfs/dev/pts      devpts defaults 0 0

Which shouldn't be present.
That line is causing /dev/pts on the "host" to be mounted with the wrong flags 
everytime one calls lxc-start on a container that has the above line in its 
fstab.

The workaround as mentioned before is to run: mount -o remount /dev/pts
and the temporary fix is to remove the line above from the container's fstab.

Here's a quick test I made to reproduce the issue:
root@castiana:~# grep pts /proc/mounts 
none /dev/pts devpts rw,nosuid,noexec,relatime,gid=5,mode=620,ptmxmode=000 0 0
root@castiana:~# lxc-start -n weblive01 -d
root@castiana:~# lxc-start -n drupal01 -d
root@castiana:~# grep pts /proc/mounts 
none /dev/pts devpts rw,nosuid,noexec,relatime,mode=600,ptmxmode=000 0 0

The full strace can be found at: http://paste.ubuntu.com/604151/
and a "grep pts" on that same trace at: http://paste.ubuntu.com/604152/

** Changed in: lxc (Ubuntu)
       Status: Invalid => Triaged

** Changed in: lxc (Ubuntu)
   Importance: Undecided => High

** Changed in: lxc (Ubuntu)
     Assignee: (unassigned) => Serge Hallyn (serge-hallyn)

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https://bugs.launchpad.net/bugs/607636

Title:
  chardev: opening backend "pty" failed

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