Thanks for reporting this bug.  To fix the cgmanager issue, add the line

lxc.mount.auto = cgroup:mixed

to your container configuration file.

That shouldn't explain your hang however.  Assuming it doesn't, please
run

lxc-start -n <container> -l trace -o debug.out -- /sbin/init debug
verbose --debug --verbose

And append both the console output and the file debug.out

 status: incomplete


** Changed in: lxc (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/1378738

Title:
  guest os boot stuck with mount operation error

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