Okay this is weird.
sudo systemctl stop dnsmasq
sudo systemctl restart lxd
sudo systemctl start dnsmasq
- 
FAILS Jun 04 23:15:32 archlinux systemd[1]: dnsmasq.service: Scheduled restart job, restart counter is at 5. 
 Jun 04 23:15:32 archlinux systemd[1]: Stopped dnsmasq - A lightweight DHCP and caching DNS server.
 Jun 04 23:15:32 archlinux systemd[1]: dnsmasq.service: Start request repeated too quickly.
 Jun 04 23:15:32 archlinux systemd[1]: dnsmasq.service: Failed with result ‘exit-code’.
 Jun 04 23:15:32 archlinux systemd[1]: Failed to start dnsmasq - A lightweight DHCP and caching DNS server.
So when dnsmasq is stopped I get ip address on the container… not sure what it affects if I dont use dnsmasq service. As it was listed as dependency to lxd.