It’s an issue of not using too many resources.
Like, why use LXD when you can create VMs?
It is possible to run X11 apps in a LXD container and get the output on your Linux desktop.
It is also possible to run a desktop in a LXD container using X2Go, https://blog.simos.info/how-to-use-the-x2go-remote-desktop-with-lxd-containers/
It should be possible to run a distro from a LXD container and have it appear on a separate X11 DISPLAY.