/usr/share/lxc/config/nesting.conf is in lxc-templates 2.0.7-0ubuntu1~16.04.2.
This file is owned by root:root, with mode 0o644.
The actual contents of the file can be viewed below.
1 2 3 4 5 6 7 8 | # Use a profile which allows nesting
lxc.aa_profile = lxc-container-default-with-nesting
# Add uncovered mounts of proc and sys, else unprivileged users
# cannot remount those
lxc.mount.entry = proc dev/.lxc/proc proc create=dir,optional 0 0
lxc.mount.entry = sys dev/.lxc/sys sysfs create=dir,optional 0 0
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