FWIW this is affecting me on jammy too.  I'll have to take a look at
systemd sources.  Adding:

lxc.init.cmd = /sbin/init systemd.unified_cgroup_hierarchy

to my config does not help, nor does bind mounting a /proc/filesystems
without 'cgroup' (v1) in it.

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https://bugs.launchpad.net/bugs/1917187

Title:
  lxc cgroup2: containers unbootable

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