It looks the host where the container is deployed has an active MySQL installation and the MySQL daemon is running.
I tried installing and starting MySQL on my Ubuntu host and could see MySQL in the container failing to start.
Could you please try stopping MySQL daemon in your host machine and then deploy the sandbox ?
I have similar configuration as yours.
Ubuntu 16.04 LTS Release:16.04
Docker version 17.12.0-ce, build c97c6d6
Yes! It works. As you said the problem was with a mysql daemon running on the host machine.