OK, so for anyone hitting this error until there may be a fix: For cases
where snapd is not needed (and perhaps purged later), and orchestration
relies on cloud-init to finish, the workaround in the container is:

systemctl stop snapd.seeded.service

or on the host:

lxc exec $CONTAINERNAME -- systemctl stop snapd.seeded.service

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https://bugs.launchpad.net/bugs/1878225

Title:
  snapd.seeded.service waits forever (?) to have snaps seeded in LXD on
  s390x and arm64

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