I have set up a LXD container with 18.04 (ubuntu:18.04), enabled nesting, set up the LXD snap in the container, and then created a nested container with 18.04 (ubuntu:18.04).
I did the configuration in /etc/systemd/network/lxd.network and then restarted the container.
I was able to ping the nested container, so it worked for me.
I cannot think of a reason why it should not work for your on the VMWare VM. There might be some (systemd?) race condition that did not show up in my case.
Regarding the network configuration for systemd (/etc/systemd/resolv.conf), see
Domains=lxd allows you to
ping alex and it will work (because the DNS client will auto-append
.lxd to make it
The issue though with modifying
/etc/systemd/resolved.conf is that (I think) you configure your whole system to use LXD’s DNS client for name resolutions.
It would be great if more people can try out the tutorial in order to figure out such cases and identify what troubleshooting to do.
Also, see https://github.com/systemd/systemd/issues/5755#issuecomment-296655750 for instructions on debugging.
I used this while writing my blog post in order to figure out what’s going on.