I just hit exactly this today running lxd 4.21 on Ubuntu 20.04. I even tried completely purging lxd and reinstalling, to no avail. Turns out it was because I was running Ubuntu in a VM, and for various reasons had the VM configured to connect to the internet through a bridge instead of a NAT. As soon as I switched the VM back to using a NAT (which is generally how I use it), lxc launch worked just like it always has. I can’t really explain why that is, but wanted to share.