https://bugs.launchpad.net/ubuntu/+source/testdrive/+bug/680138 Seems like it 
worked around a similar issue.
I have everything relevant to this command on the same btrfs filesystem.  

I can reproduce with just:
zsync -i /var/lib/lxc/unity8-lxc/ubuntu-next.iso -o 
/var/lib/lxc/unity8-lxc/ubuntu-next.iso 
http://cdimage.ubuntu.com/ubuntu-desktop-next/daily-live/current/vivid-desktop-amd64.iso.zsync

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https://bugs.launchpad.net/bugs/1418671

Title:
  unity8-lxc-setup crashed with FileNotFoundError in __main__: [Errno 2]
  No such file or directory:
  '/var/lib/lxc/unity8-lxc/rootfs/etc/hostname'

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