Hmm, you have a very much unsupported environment.

Basically what your log says is that you have LXD installed and it can
be reached (otherwise "error: not implemented" wouldn't have been
returned).

But it also says that you have daemon startup disabled as can be seen
with "invoke-rc.d: policy-rc.d denied execution of start.". This results
in the script thinking (rightfully) that LXD was upgraded, but then
talks to an old out of date version.

** Changed in: lxd (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/1630300

Title:
  "error: not implemented" upgrading to 2.3-0ubuntu7~ubuntu14.04.1~ppa1

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