This bug was fixed in the package lxd - 2.0.10-0ubuntu1~16.04.2

---------------
lxd (2.0.10-0ubuntu1~16.04.2) xenial; urgency=medium

  * Fix regression in image update logic (LP: #1712455):
    - 0005-Fix-regression-in-image-auto-update-logic.patch
    - 0006-lxd-images-Carry-old-cached-value-on-refresh.patch
    - 0007-Attempt-to-restore-the-auto_update-property.patch

  * Ship a sysctl.d file that bumps inotify watches count. (LP: #1602192)
  * Update debian/watch to look only at LTS releases.

 -- Stéphane Graber <[email protected]>  Tue, 22 Aug 2017 20:39:36
-0400

** Changed in: lxd (Ubuntu Xenial)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1602192

Title:
  when starting many LXD containers, they start failing to boot with
  "Too many open files"

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