I have added two other packages to this bug.

livecd-rootfs - For the ubuntu-server and ubuntu-cpc projects a chroot
hook should be added to create the lxd system group.

cloud-init - We have the suggestion that user creation should not
initially create user groups that do not exist.  You may consider adding
a second pass in a final cloud-init module which would add groups for
the default user which did not exist during the first pass (or create
them if they still do not exist; and adding a mechanism for identifying
system groups would be a good enhancement).  This 2-stage approach would
allow packages and snaps that get installed during boot (after cloud-
init creates the default user) to create their own groups and manage
them while ensuring the default user does get added to these.

** Also affects: livecd-rootfs (Ubuntu)
   Importance: Undecided
       Status: New

** Also affects: cloud-init (Ubuntu)
   Importance: Undecided
       Status: New

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https://bugs.launchpad.net/bugs/1844498

Title:
  18.10+ cloud images have the LXD group as gid 1000

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