Public bug reported:

Ubuntu Xenial, Wiley, ... have a -root.tar.gz available in the cloudimg
repository. Unfortunately there is no -root.tar.gz available for
yakkety. It is needed for nova-lxd to start containers

As an example for Xenial see here:
Not available for Yakkety:

** Affects: ubuntu
     Importance: Undecided
         Status: New

** Project changed: launchpad => ubuntu

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  yakkety-server-cloudimg-amd64-root.tar.gz to create LXD containers not

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