[Bug 1425477] [NEW] After some time of LXC usage SSH fails with `openpty: Permission denied`

[gozdal]

Public bug reported:

I'm running Ubuntu 14.04.2 LTS on GNU/Linux 3.13.0-45-generic x86_64 as
a host machine for tests run on LXC guests.

After a few test runs on LXC machines, startup of next LXC machine hangs indefinitely.
At the same time SSH connections to the host machine display "PTY allocation request failed on channel 0" and SSH logs in auth.log

Feb 25 05:19:28 remotedev sshd[18578]: error: openpty: Permission denied
Feb 25 05:19:28 remotedev sshd[18628]: error: session_pty_req: session 0 alloc failed

Only reboot brings the machine back to usable state.
I've tried destroying the non-starting LXC guest, stopping removing all guests, purging lxc and lxc-templates.

** Affects: lxc (Ubuntu)
     Importance: Undecided
         Status: New

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https://bugs.launchpad.net/bugs/1425477

Title:
  After some time of LXC usage SSH fails with `openpty: Permission
  denied`

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