It also affected me on Ubuntu 16.04 LTS with /var/lib/lxc mount via
bind.

My original setup only had 8GB for /var, so a bind to directory in /home
was the custom hack I did to give lxc more space.

$ grep lxc /etc/fstab
/home/var/lib/lxc                          /var/lib/lxc      none    bind       
                             0       0

Once tested without the bind, the error was gone.

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https://bugs.launchpad.net/bugs/1389305

Title:
  sudo doesn't work on unprivileged lxc container on top of ecryptfs

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