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Replying to myself: On Ubuntu Xenial you have to start Docker with this additional flag:

    --exec-opt native.cgroupdriver=cgroupfs
Since Xenial uses systemd, there's no longer an /etc/default/docker. Instead, create /etc/systemd/system/docker.service.d/docker.conf with:

      [Service]
      ExecStart=
      ExecStart=/usr/bin/docker daemon --exec-opt native.cgroupdriver=cgroupfs --iptables=false --bridge=cbr0 --ip-masq=false



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