And in some cases squashfuse may not have the proper dep of fuse. And
you may need to manually:

apt install fuse # in addition to squashfuse

<stgraber> looks like squashfuse is missing a dependency on "fuse"
<stgraber> which is part of the official Ubuntu images but not in the community 
images
<stgraber> so if you use "lxc launch ubuntu:16.04" it'll work (after you 
install squashfuse)
<stgraber> but if you use "images:ubuntu/xenial" you'll need to install "fuse" 
and "squashfuse"

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https://bugs.launchpad.net/bugs/1611078

Title:
  Support snaps inside of lxd containers

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