Confirmed this works for me in xenial.

Two notes on the test case in description:  1. cgroup namespaces must be
disabled (in the kernel or in lxc) to reproduce this issue.   I'd
forgotten about that, and it seems to change the priority of this for
xenial.  2. the test case must be done using lxc, not lxd, as lxd
doesn't seem to be working right at the moment without cgroup
namespaces.  So:  lxc-create -t download -n j1 -- -d debian -r jessie -a
amd64;  lxc-start -n j1

** Tags removed: verification-needed
** Tags added: verification-done

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https://bugs.launchpad.net/bugs/1574765

Title:
  Newer systemd fails to start due to EINVAL on access to
  /sys/fs/cgroup/systemd

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