Resolving Port Conflict on Fresh Ubuntu 22.04.2 LTS Installation with LXD and named Service

System: Ubuntu 22.04.2 LTS
LXD version: 5.12 from snap

fresh installation of Ubuntu 22.04.2

>> sudo snap install lxd
lxd 5.12-c63881f from Canonical✓ installed
>> sudo lxd init --auto
Error: Failed to create local member network "lxdbr0" in project "default": 
The DNS and DHCP service exited prematurely:
Process exited with non-zero value 2
("dnsmasq: failed to create listening socket for fc33:85e4:42be:a32f::1: Address already in use")

I think issue is that port 53 is occupied by named (dns) on the fresh Ubuntu install.
If it disable the named service than the commands works but it causes DNS problems later

What’s best way to handle the issue?

Based on the error message, it seems that the issue is related to a conflict between the named service (which uses port 53 for DNS) and the dnsmasq service (which is used by LXD to provide DHCP and DNS services for containers).

Yes, you should configure named to not listen on all IP addresses and just the specific ones you need so that LXD can listen on its managed bridges.