I am using lxc containers and would like to distribute and manage these images thru a repository. I see that lxd acts as a image server and can be used to manage lxd images. Can lxd be used for lxc images too? If so, can you share any pointers in this regard.
No, lxc-download uses a different index format and so can’t talk to LXD directly.
The files themselves may be mostly the same though, if using a LXD split image with a rootfs in .tar.xz, the rootfs can then be shared between LXC and LXD, only requiring metadata tarballs that are specific to LXC or LXD.