So, you want to run a docker container inside an LXC Container.
firstly, you need to make docker process up and running inside an lxc container.
sudo lxc config edit <lxc-container-name>
In Config Object, Add
linux.kernel_modules: overlay,ip_tables
security.nesting: true
security.privileged: true
Then Exit from that YAML File, And Restart the LXC Container
sudo lxc restart <container_name>
After Successfull restart of LXC Container.
exec into that container by
sudo lxc exec <container_name> /bin/bash
Then,
sudo rm /var/lib/docker/network/files/local-kv.db
Restart Docker Service,
service docker restart (In LXC Container)
Then you can use docker process in LXC Container as if you are in a VM.