Snapcraft from snap won't work

I created a new ubuntu 16.04 LXD container, installed squashfuse and then installed snapcraft from the snap store. When running snapcraft, it says:

/snap/snapcraft/2381/command-snapcraft.wrapper: 2: exec: /snap/snapcraft/2381/usr/bin/python3: not found

Here are the steps

lxc launch ubuntu:16.04 xenial
lxc shell xenial
apt update; apt install squashfuse -y
snap install snapcraft --classic

I think maybe you installed snapcraft from edge, given your command line shows revision 2381, which is only in the edge channel. I just reproduced your steps and it works for me.

root@sensible-jaguar:~# snap install snapcraft --classic
snapcraft 3.0.1 from 'canonical' installed
root@sensible-jaguar:~# snapcraft 
You need multipass installed to build snaps which use the base keyword.
Would you like to install it now? [y/N]: n
multipass is required to continue.

  stable:    3.0.1               (2374) 28MB classic <
  candidate: 3.0.1               (2374) 28MB classic 
  beta:      ↑                                       
  edge:      3.0.1+git1.g305304e (2381) 28MB classic 
installed:   3.0.1               (2374) 28MB classic 

I had initially installed snapcraft from stable and had that issue, than upgraded to edge just to be sure.

Interestingly however, I am not able to reproduce the issue in a new container.