After finally getting some time to test the conbee passed through to a lxc container which is running docker, I finally got things working.
Passing it through as a unix-char to the lxc container worked great, and then passing that into the zigbee2mqtt docker container worked perfectly.
I think I’ll go the route of running home assistant and it’s add on’s in a docker lxc. Resource wise, it is nice not to have it tied up in a vm.
As for the final solution of passing the conbee into a lxd vm and being seen correctly, I really don’t know the answer. If anyone is able to figure that out with a lxd vm please post the solution here so others can find it.