Failed to run: dnsmasq - Address already in use

That means that you have an existing DNS or DHCP server running on your machine which is binding all interfaces, preventing LXD from listening on lxdbr0.

sudo netstat -lnp | grep ":53 " should show you what it is (it’s often bind9/named).
Once you figure out what it is, you have two options:

  • Remove that conflicting DNS server (if you don’t actually need it)
  • Configure it to only bind to the interfaces you actually need it on