That looks like snapd not connecting the lxd-support interface which is required for the LXD snap. This is likely normal as that interface never auto-connects for security reasons.
The snap download should also download the store assertion which you should be able to snap ack or something like that so when installing the LXD snap, you do get things connected.
Thanks for the feedback, I am not executing snap ack as it would make the installed snap track a remote snap channel, making it eventually refresh automatically.
I have tried to snap ack the assertion before install on a test machine, however the issue still persists:
I copied a local LXD snap from a server installation we did 2 months ago to the new local server, this snap has LXD version 4.0.8 and seems to install fine with or without the ack. Could this issue be due to the updated LXD version? I will create a thread over at snap nevertheless.
Yes, recent snap builds require the lxd-support interface even for the configure hook which is run at install time. So that will cause this behavior for you but it’s not anything that we can improve on our side.
What you need is a way to have those interfaces connected at installation time.
snap install lxd --edge # This installs the interfaces from the snapstore
snap install ./lxd.custom.snap --dangerous # Refresh to your custom snap and keep the interfaces
snap alias lxd.lxc lxc