The problem is not a bug but an issue with the image that was being
booted.

Needed to properly publish the image to glance:

glance image-create --disk-format raw --container-format bare --name
"Ubuntu LXC" --property hypervisor_type=lxc --is-public true < precise-
server-cloudimg-amd64.img

** Changed in: nova
       Status: New => Invalid

** Changed in: nova (Ubuntu)
       Status: Confirmed => Invalid

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https://bugs.launchpad.net/bugs/1205525

Title:
  LXC instances fail with mount error, attempting to mount wrong
  partition

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