I was not able to reach the Internet from the container and the problem seemed to be partially related to the 169.254.x.x address range. This helped me setup static IPs [Assign static IP address to systemd-nspawn container (private networking mode)][1].

If you are running dnsmasq on the host, you may experience a conflict with the DHCP service provided by systemd-networkd. Since the IPs are static you can set the option **DHCPServer=no** to fix this.


 [1]: https://sing%20this%20https://gist.github.com/lamafab/a626cfe7be5e3c1ecfe06251ddab4130