lxd networking issue while building snap in confinement mode

Question

I am building an snap application which creates a docker container. I am able to build the snap in classic mode. But when I try to install the application in confinement I get the below error. A network related operation failed in a context of no network access.
Recommended resolution: Verify that the environment has internet connectivity; see https://craft-providers.readthedocs.io/ for further reference. How can I configure lxd networking, so that it can communicate with internet ?

I tried manually setting up lxd networking. Tried changing the networking parameters. But still unable to connect to internet through lxd.