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On your host system, either install LXC or install LXD. Though LXD setups an LXC subsystem, If found that the packages are different.

This is a fresh ubuntu system with LXD already installed,

# show version,
lsb_release -a
No LSB modules are available.
Distributor ID:	Ubuntu
Description:	Ubuntu 16.04.2 LTS
Release:	16.04
Codename:	xenial


# confirm LXD insalled,
sudo apt-get install lxd
Reading package lists... Done
Building dependency tree       
Reading state information... Done
lxd is already the newest version (2.0.10-0ubuntu1~16.04.1).
0 upgraded, 0 newly installed, 0 to remove and 0 not upgraded.

Now simulate LXC install and notice all these extra packages and configuration files,

sudo apt-get install --dry-run lxc
Reading package lists... Done
Building dependency tree       
Reading state information... Done
The following additional packages will be installed:
  busybox-static cloud-image-utils debootstrap distro-info genisoimage libaio1 libasn1-8-heimdal libboost-iostreams1.58.0
  libboost-random1.58.0 libboost-system1.58.0 libboost-thread1.58.0 libcurl3-gnutls libglib2.0-0 libglib2.0-data libgssapi3-heimdal
  libhcrypto4-heimdal libheimbase1-heimdal libheimntlm0-heimdal libhx509-5-heimdal libiscsi2 libkrb5-26-heimdal libldap-2.4-2
  libnspr4 libnss3 libnss3-nssdb libpam-cgfs librados2 librbd1 libroken18-heimdal librtmp1 libsasl2-2 libsasl2-modules
  libsasl2-modules-db libwind0-heimdal lxc-templates lxc1 python3-lxc qemu-block-extra qemu-utils shared-mime-info sharutils
  uuid-runtime xdg-user-dirs
Suggested packages:
  cloud-utils-euca shunit2 wodim cdrkit-doc libsasl2-modules-otp libsasl2-modules-ldap libsasl2-modules-sql
  libsasl2-modules-gssapi-mit | libsasl2-modules-gssapi-heimdal qemu-user-static btrfs-tools lxctl bsd-mailx | mailx
The following NEW packages will be installed:
  busybox-static cloud-image-utils debootstrap distro-info genisoimage libaio1 libasn1-8-heimdal libboost-iostreams1.58.0
  libboost-random1.58.0 libboost-system1.58.0 libboost-thread1.58.0 libcurl3-gnutls libglib2.0-0 libglib2.0-data libgssapi3-heimdal
  libhcrypto4-heimdal libheimbase1-heimdal libheimntlm0-heimdal libhx509-5-heimdal libiscsi2 libkrb5-26-heimdal libldap-2.4-2
  libnspr4 libnss3 libnss3-nssdb libpam-cgfs librados2 librbd1 libroken18-heimdal librtmp1 libsasl2-2 libsasl2-modules
  libsasl2-modules-db libwind0-heimdal lxc lxc-templates lxc1 python3-lxc qemu-block-extra qemu-utils shared-mime-info sharutils
  uuid-runtime xdg-user-dirs
0 upgraded, 44 newly installed, 0 to remove and 0 not upgraded.
Inst uuid-runtime (2.27.1-6ubuntu3.3 Ubuntu:16.04/xenial-updates [amd64])
Inst libiscsi2 (1.12.0-2 Ubuntu:16.04/xenial [amd64])
Inst busybox-static (1:1.22.0-15ubuntu1 Ubuntu:16.04/xenial [amd64])
Inst libroken18-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libasn1-8-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libhcrypto4-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libheimbase1-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libwind0-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libhx509-5-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libkrb5-26-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libheimntlm0-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libgssapi3-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libsasl2-modules-db (2.1.26.dfsg1-14build1 Ubuntu:16.04/xenial [amd64])
Inst libsasl2-2 (2.1.26.dfsg1-14build1 Ubuntu:16.04/xenial [amd64])
Inst libldap-2.4-2 (2.4.42+dfsg-2ubuntu3.2 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst librtmp1 (2.4+20151223.gitfa8646d-1ubuntu0.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libcurl3-gnutls (7.47.0-1ubuntu2.2 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libglib2.0-0 (2.48.2-0ubuntu1 Ubuntu:16.04/xenial-updates [amd64])
Inst libglib2.0-data (2.48.2-0ubuntu1 Ubuntu:16.04/xenial-updates [all])
Inst libsasl2-modules (2.1.26.dfsg1-14build1 Ubuntu:16.04/xenial [amd64])
Inst shared-mime-info (1.5-2ubuntu0.1 Ubuntu:16.04/xenial-updates [amd64])
Inst xdg-user-dirs (0.15-2ubuntu6 Ubuntu:16.04/xenial [amd64])
Inst distro-info (0.14build1 Ubuntu:16.04/xenial [amd64])
Inst genisoimage (9:1.1.11-3ubuntu1 Ubuntu:16.04/xenial [amd64])
Inst libaio1 (0.3.110-2 Ubuntu:16.04/xenial [amd64])
Inst libboost-iostreams1.58.0 (1.58.0+dfsg-5ubuntu3.1 Ubuntu:16.04/xenial-updates [amd64])
Inst libboost-system1.58.0 (1.58.0+dfsg-5ubuntu3.1 Ubuntu:16.04/xenial-updates [amd64])
Inst libboost-random1.58.0 (1.58.0+dfsg-5ubuntu3.1 Ubuntu:16.04/xenial-updates [amd64])
Inst libboost-thread1.58.0 (1.58.0+dfsg-5ubuntu3.1 Ubuntu:16.04/xenial-updates [amd64])
Inst libnspr4 (2:4.13.1-0ubuntu0.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libnss3-nssdb (2:3.28.4-0ubuntu0.16.04.2 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [all]) []
Inst libnss3 (2:3.28.4-0ubuntu0.16.04.2 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst libpam-cgfs (2.0.7-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [amd64])
Inst librados2 (10.2.7-0ubuntu0.16.04.1 Ubuntu:16.04/xenial-updates [amd64])
Inst librbd1 (10.2.7-0ubuntu0.16.04.1 Ubuntu:16.04/xenial-updates [amd64])
Inst python3-lxc (2.0.8-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [amd64])
Inst lxc1 (2.0.8-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [amd64])
Inst lxc (2.0.8-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [all])
Inst lxc-templates (2.0.8-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [amd64])
Inst qemu-block-extra (1:2.5+dfsg-5ubuntu10.14 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst qemu-utils (1:2.5+dfsg-5ubuntu10.14 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Inst sharutils (1:4.15.2-1 Ubuntu:16.04/xenial [amd64])
Inst cloud-image-utils (0.27-0ubuntu24 Ubuntu:16.04/xenial [all])
Inst debootstrap (1.0.78+nmu1ubuntu1.4 Ubuntu:16.04/xenial-updates [all])
Conf uuid-runtime (2.27.1-6ubuntu3.3 Ubuntu:16.04/xenial-updates [amd64])
Conf libiscsi2 (1.12.0-2 Ubuntu:16.04/xenial [amd64])
Conf busybox-static (1:1.22.0-15ubuntu1 Ubuntu:16.04/xenial [amd64])
Conf libroken18-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libasn1-8-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libhcrypto4-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libheimbase1-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libwind0-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libhx509-5-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libkrb5-26-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libheimntlm0-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libgssapi3-heimdal (1.7~git20150920+dfsg-4ubuntu1.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libsasl2-modules-db (2.1.26.dfsg1-14build1 Ubuntu:16.04/xenial [amd64])
Conf libsasl2-2 (2.1.26.dfsg1-14build1 Ubuntu:16.04/xenial [amd64])
Conf libldap-2.4-2 (2.4.42+dfsg-2ubuntu3.2 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf librtmp1 (2.4+20151223.gitfa8646d-1ubuntu0.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libcurl3-gnutls (7.47.0-1ubuntu2.2 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libglib2.0-0 (2.48.2-0ubuntu1 Ubuntu:16.04/xenial-updates [amd64])
Conf libglib2.0-data (2.48.2-0ubuntu1 Ubuntu:16.04/xenial-updates [all])
Conf libsasl2-modules (2.1.26.dfsg1-14build1 Ubuntu:16.04/xenial [amd64])
Conf shared-mime-info (1.5-2ubuntu0.1 Ubuntu:16.04/xenial-updates [amd64])
Conf xdg-user-dirs (0.15-2ubuntu6 Ubuntu:16.04/xenial [amd64])
Conf distro-info (0.14build1 Ubuntu:16.04/xenial [amd64])
Conf genisoimage (9:1.1.11-3ubuntu1 Ubuntu:16.04/xenial [amd64])
Conf libaio1 (0.3.110-2 Ubuntu:16.04/xenial [amd64])
Conf libboost-iostreams1.58.0 (1.58.0+dfsg-5ubuntu3.1 Ubuntu:16.04/xenial-updates [amd64])
Conf libboost-system1.58.0 (1.58.0+dfsg-5ubuntu3.1 Ubuntu:16.04/xenial-updates [amd64])
Conf libboost-random1.58.0 (1.58.0+dfsg-5ubuntu3.1 Ubuntu:16.04/xenial-updates [amd64])
Conf libboost-thread1.58.0 (1.58.0+dfsg-5ubuntu3.1 Ubuntu:16.04/xenial-updates [amd64])
Conf libnspr4 (2:4.13.1-0ubuntu0.16.04.1 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libnss3-nssdb (2:3.28.4-0ubuntu0.16.04.2 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [all])
Conf libnss3 (2:3.28.4-0ubuntu0.16.04.2 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf libpam-cgfs (2.0.7-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [amd64])
Conf librados2 (10.2.7-0ubuntu0.16.04.1 Ubuntu:16.04/xenial-updates [amd64])
Conf librbd1 (10.2.7-0ubuntu0.16.04.1 Ubuntu:16.04/xenial-updates [amd64])
Conf python3-lxc (2.0.8-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [amd64])
Conf lxc1 (2.0.8-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [amd64])
Conf lxc (2.0.8-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [all])
Conf lxc-templates (2.0.8-0ubuntu1~16.04.2 Ubuntu:16.04/xenial-updates [amd64])
Conf qemu-block-extra (1:2.5+dfsg-5ubuntu10.14 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf qemu-utils (1:2.5+dfsg-5ubuntu10.14 Ubuntu:16.04/xenial-updates, Ubuntu:16.04/xenial-security [amd64])
Conf sharutils (1:4.15.2-1 Ubuntu:16.04/xenial [amd64])
Conf cloud-image-utils (0.27-0ubuntu24 Ubuntu:16.04/xenial [all])
Conf debootstrap (1.0.78+nmu1ubuntu1.4 Ubuntu:16.04/xenial-updates [all])

Though it might be fine, I think it's a bad idea to try and run LXC and LXD together. Also, because I like my host system to be as clean as possible, I will make sure to start with a clean install of the host and then chose either LXD or LXC.