I've seen this as well -- it may just be because the first run of lxd is taking a long time and we need to adjust a timeout somewhere in the UI code.  We had to adjust some timeouts in concierge and elsewhere to get past this on Kevin originally.

Observed this issue sometimes on eve device also on 69.0.3486.0,10866.1.0

Was this fixed by the timeout changes?

We changed the timeouts on the platform side so it won't kill the VM but we still need to change the timeouts on the chrome side so it doesn't show the error message when the VM is still starting.

Assigning to nverne for Chrome-side timeout changes.

Timeout changes on the platform side:

// How long to wait before timing out on `lxd waitready`.
constexpr int kLxdWaitreadyTimeoutSeconds = 150;

// How long to wait before timing out on shutdown RPCs.
constexpr int64_t kShutdownTimeoutSeconds = 30;

// How long to wait before timing out on regular RPCs.
constexpr int64_t kDefaultTimeoutSeconds = 10;

// How long to wait before timing out on child process exits.
constexpr base::TimeDelta kChildExitTimeout = base::TimeDelta::FromSeconds(10);

How should this translate to chrome DBUS timeouts? i.e. should we wait 150 or 160 seconds for the StartVm dbus command?

yeah something higher than 150 would be appropriate

The following revision refers to this bug:
  https://chromium.googlesource.com/chromium/src.git/+/8beb296c0c3a67d03b7d07ea2029a607b0324e35

commit 8beb296c0c3a67d03b7d07ea2029a607b0324e35
Author: Nicholas Verne <nverne@chromium.org>
Date: Fri Jul 27 04:10:41 2018

StartVm dbus timeout increased

This increase is temporary and should be reverted once LXD startup code
has been edited to remove unnecessary crypto calculations. These take much
longer on Kevin than Eve at present.

Bug:  863190 
Change-Id: Ib2a004c46ecbf45c097bf3d6843e930b5edec7f9
Reviewed-on: https://chromium-review.googlesource.com/1152334
Reviewed-by: Ryo Hashimoto <hashimoto@chromium.org>
Commit-Queue: Nicholas Verne <nverne@chromium.org>
Cr-Commit-Position: refs/heads/master@{#578536}
[modify] https://crrev.com/8beb296c0c3a67d03b7d07ea2029a607b0324e35/chromeos/dbus/concierge_client.cc

Is #9 a fix for the issue? If so, please verify and submit merge request for M69.

Your change meets the bar and is auto-approved for M69. Please go ahead and merge the CL to branch 3497 manually. Please contact milestone owner if you have questions.
Owners: amineer@(Android), kariahda@(iOS), cindyb@(ChromeOS), govind@(Desktop)

For more details visit https://www.chromium.org/issue-tracking/autotriage - Your friendly Sheriffbot

The following revision refers to this bug:
  https://chromium.googlesource.com/chromium/src.git/+/84344615b272e64a158289aebf36b48cdd38a1f3

commit 84344615b272e64a158289aebf36b48cdd38a1f3
Author: Nicholas Verne <nverne@chromium.org>
Date: Wed Aug 01 04:02:59 2018

StartVm dbus timeout increased

This increase is temporary and should be reverted once LXD startup code
has been edited to remove unnecessary crypto calculations. These take much
longer on Kevin than Eve at present.

Bug:  863190 
Change-Id: Ib2a004c46ecbf45c097bf3d6843e930b5edec7f9
Reviewed-on: https://chromium-review.googlesource.com/1152334
Reviewed-by: Ryo Hashimoto <hashimoto@chromium.org>
Commit-Queue: Nicholas Verne <nverne@chromium.org>
Cr-Original-Commit-Position: refs/heads/master@{#578536}(cherry picked from commit 8beb296c0c3a67d03b7d07ea2029a607b0324e35)
Reviewed-on: https://chromium-review.googlesource.com/1157925
Reviewed-by: Nicholas Verne <nverne@chromium.org>
Cr-Commit-Position: refs/branch-heads/3497@{#304}
Cr-Branched-From: 271eaf50594eb818c9295dc78d364aea18c82ea8-refs/heads/master@{#576753}
[modify] https://crrev.com/84344615b272e64a158289aebf36b48cdd38a1f3/chromeos/dbus/concierge_client.cc

Verified on 10895.16.0, 69.0.3497.29