Thanks. The chown solves the issue. I didn't need to make the
modification to the pam config file at all. I do need to do the chown
every time I log in though, with or without the pam change.

FWIW, when I ssh into the working server, the relevant /sys directory is
owned by swarren:swarren without any intervention. On my laptop, it's
always owned by root:root.

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https://bugs.launchpad.net/bugs/1556447

Title:
  lxc-start fails: lxc_cgfsng - cgfsng.c:all_controllers_found:430 - no
  systemd controller mountpoint found

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