I had the same issue:
When the Package Configuration dialog came up on Configuring lxd
LXD snap track  latest/3.0/4.0
When I chose 4.0 and proceed, the installation hung indefinitely at 
==> Installing the LXD snap from the 4.0 track for ubuntu-20.04 

My workaround was to do the following at the point the Configuration dialog 
showed up in seperate shell:
sudo snap install hello-world
sudo snap list

Then proceed with Configuring lxd. The installation proceeded and did not hang 
at the Installing LXD snap point
$ sudo snap list
[sudo] password for pos: 
Name         Version    Rev    Tracking       Publisher   Notes
core         16-2.44.3  9066   latest/stable  canonical*  core
core18       20200427   1754   latest/stable  canonical*  base
hello-world  6.4        29     latest/stable  canonical*  -
lxd          4.0.1      14890  4.0/stable/…   canonical*  -

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https://bugs.launchpad.net/bugs/1874878

Title:
  Did a "do-release-upgrade" from 18.04 to 20.04 and got an error
  message

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