Ah... this works...

lxc-create -t ubuntu -n test
lxc-start -n test

My guess is the default container template is suppose to be the template
matching the default OS, which in this case is ubuntu.

Somehow this isn't being done.

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https://bugs.launchpad.net/bugs/1271000

Title:
  lxc-start fails with Out of memory reading cgroups

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