I've used my initial steps of the problem when we've found it on noble:

$ multipass launch noble --name test -d 10G
test$ sudo apt install -y linux-image-6.14.0-33-generic
test$ sudo reboot
test$ snap install --channel=5.21/stable lxd
test$ sudo lxd init --auto
test$ lxc launch ubuntu:j j0 -c security.nesting=true
test$ lxc shell j0
j0$ sudo snap remove --purge lxd
j0$ cat <<EOF >/etc/apt/sources.list.d/ubuntu-$(lsb_release -cs)-proposed.list
# Enable Ubuntu proposed archive
deb http://archive.ubuntu.com/ubuntu/ $(lsb_release -cs)-proposed restricted 
main multiverse universe
EOF
j0$ apt update ; apt upgrade
j0$ snap install --channel=5.21/stable lxd

Updating the snapd to 2.73+ubuntu22.04 from proposed works and fixes the
following broken state snapd is in after the initial start of the
container with snapd 2.72

root@j0:~# snap changes
ID   Status  Spawn                     Ready               Summary
1    Error   6 days ago, at 10:50 UTC  today at 08:26 UTC  Initialize system 
state
2    Done    today at 08:26 UTC        today at 08:26 UTC  Initialize device

root@j0:~# snap tasks 1
Status  Spawn                     Ready               Summary
Done    6 days ago, at 10:50 UTC  today at 08:26 UTC  Ensure prerequisites for 
"snapd" are available 
...
......................................................................
Setup snap "snapd" (25577) security profiles

2025-12-09T08:26:54Z INFO Waiting for automatic snapd restart...
2025-12-09T08:26:56Z INFO Waiting for automatic snapd restart...
2025-12-09T08:26:56Z INFO Waiting for automatic snapd restart...
2025-12-09T08:26:58Z ERROR cannot get current snapd snap info: cannot find 
current revision for snap snapd: readlink /snap/snapd/current: no such file or 
directory

......................................................................
Make snap "snapd" (25577) available to the system

2025-12-09T08:26:54Z INFO Requested daemon restart (snapd snap).

......................................................................
Copy snap "lxd" data

2025-12-09T08:26:54Z ERROR unlinkat
/var/snap/lxd/common/var/lib/lxcfs/proc/cpuinfo: function not
implemented

......................................................................
Start snap "lxd" (36558) services

2025-12-09T08:26:53Z ERROR systemctl command [start snap.lxd.activate.service] 
failed with exit status 1: stderr:
Job for snap.lxd.activate.service failed because the control process exited 
with error code.
See "systemctl status snap.lxd.activate.service" and "journalctl -xeu 
snap.lxd.activate.service" for details.

After the upgrade to snapd 2.73 we get

root@j0:~# snap changes
ID   Status  Spawn                     Ready               Summary
1    Error   6 days ago, at 10:50 UTC  today at 08:26 UTC  Initialize system 
state
2    Done    today at 08:26 UTC        today at 08:26 UTC  Initialize device
3    Done    today at 08:28 UTC        today at 08:28 UTC  Initialize system 
state

and the system is successfully initialized. LXD is functional after the
installation and nested containers can be created.

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https://bugs.launchpad.net/bugs/2127244

Title:
  Nested LXD is broken with snapd 2.71+ubuntu22.04

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