So it's expected that the download template images will not replicate
any host settings (locales, timezone, ...) as those are completely self-
contained images.

As discussed on IRC, it looks like Xenial needs you to also change the
/etc/localtime symlink, which is why your manual change worked for
trusty but not xenial.

** Changed in: lxc (Ubuntu)
       Status: New => Invalid

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  time in lxc ubuntu template

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