Continuum-v1421263039 shell session: cannot create capsule at all

cont-v1421263039

$ apc version
0.14.1 (release-403c-0-g859acc1)

$ apc capsule create cap2 --allow-egress -i linux
╭─────────────────────────────────────────────╮
│              Capsule Settings               │
├─────────────┬───────────────────────────────┤
│        FQN: │ job::/sandbox/developer::cap2 │
│      Image: │ linux                         │
│        CPU: │ 0ms/s (uncapped)              │
│     Memory: │ 256MB                         │
│       Disk: │ 1024MB                        │
│    Network: │ 5Mbps                         │
│     Netmax: │ 0Mbps (uncapped)              │
│ Open Egress │ true                          │
╰─────────────┴───────────────────────────────╯

Is this correct? [Y/n]:
Searching for operating system "linux"... done
Using package "ubuntu-14.04"
Creating the capsule "cap2"... done
Waiting for the capsule to start...

Error: Instances have failed to start. Please review the logs to see about resolving the issue.
Try `apc help` for more information.

$ apc capsule logs cap2 --no-tail
[system-error] "job::/sandbox/developer::cap2" now considered flapping, having failed 3 times within 5m0s