There are two primary situations where we don't want the machine agent to install lxc: 1. when the machine agent is inside an lxc container as known by state 2. when the machine has been provisioned by the local provider (because it is an lxc container)
When lxc is installed inside a container, it adds a bridge network device with the same defaults as the host. This kills any routing in or out of the container.
Upstart provides support for setting environment variables as part of the config, and we use this to pass the provider type through.