Hmm, cgroup:rw has absolutely nothing to do with this.
LXD uses a cgroup namespace by default which completely ignores that particular 
setting.

With the cgroup namespace, root in the container is allowed to do
anything it wants to the /sys/fs/cgroup tree.

root@disco:~# mkdir /sys/fs/cgroup/freezer/snap.blah
root@disco:~# chown 1000:1000 /sys/fs/cgroup/freezer/snap.blah

The error also quite clearly comes from udev rather than anything cgroup
related:

root@disco:~# snap install hello-world
error: cannot perform the following tasks:
- Setup snap "core" (6531) security profiles (cannot setup udev for snap 
"core": cannot reload udev rules: exit status 2
udev output:
)
- Setup snap "core" (6531) security profiles (cannot reload udev rules: exit 
status 2
udev output:
)
root@disco:~# snap install hello-world
2019-03-27T20:18:56Z INFO Waiting for restart...
hello-world 6.3 from Canonical✓ installed
root@disco:~#

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https://bugs.launchpad.net/bugs/1712808

Title:
  udev interface fails in privileged containers

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