Hm,

 lxc-start 20160321163436.552 ERROR lxc_utils - utils.c:mkdir_p:253 -
Permission denied - failed to create directory '/sys/fs/cgroup/blkio/lxc
/libertine-smoke-test/lxc/'

This is odd, if that was not writeable then cgfsng should not have
stored it as a writeable hierarchy.

Just to make sure, can you show the container configuration for both
containers?

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https://bugs.launchpad.net/bugs/1560120

Title:
  Unprivileged nested container will not start inside a privileged
  container

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