Apparently the fixes we need should already be in the xenial  lxc
packages.  Could you please try (in one root terminal)

systemctl stop cgmanager

then see whether you're still able to start apps?

(If not, then in that terminal again do 'systemctl start cgmanager')

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https://bugs.launchpad.net/bugs/1544157

Title:
  lxc exec not working in xenial

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