Looks like the problem is to do with systemd and it failing to spawn
units that have:

PrivateNetwork=yes

I'm not sure exactly what systemd attempts to do which doesn't work in
an unprivileged container, but the answer is almost certainly to have it
not do that :)

Re-assigning bug to systemd.

** Package changed: lxd (Ubuntu) => systemd (Ubuntu)

** Summary changed:

- hostnamectl does not work inside lxd
+ Units using PrivateNetwork=yes don't work inside user namespaces

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https://bugs.launchpad.net/bugs/1656024

Title:
  Units using PrivateNetwork=yes don't work inside user namespaces

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