Yes it is possible with LXD.
I have my custom LXD Image server. Please do the following:
sudo lxc remote add codedream lxdimage.codedream.ml --public
sudo lxc launch codedream:ubuntu1604-kodhe-xfcedesktop my-desktop -c "security.privileged=true" -c "security.nesting=true"
Or if you prefer unity desktop:
sudo lxc remote add codedream lxdimage.codedream.ml --public
sudo lxc launch codedream:ubuntu1604-kodhe-unitydesktop my-desktop -c "security.privileged=true" -c "security.nesting=true"
Also now have ukui:
sudo lxc remote add codedream lxdimage.codedream.ml --public
sudo lxc launch codedream:ukui my-desktop -c "security.privileged=true" -c "security.nesting=true"
After, install NoMachine, and connect to lxd container by IP and port 4000. Username=kodhe, Password=1. To view IP:
sudo lxc list my-desktop