autoinstall/user-data/users block has no effect at all in live-server 20.04.3

[LittleBigBrain]

I try to use user-data/users block as following to create additional user, however this does not work at all. After installation, only testuser exists but test123 does not exist.

#cloud-config
autoinstall:
  version: 1
  apt:
    geoip: true
    preserve_sources_list: false
    primary:
    - arches: [amd64, i386]
      uri: http://es.archive.ubuntu.com/ubuntu
    - arches: [default]
      uri: http://ports.ubuntu.com/ubuntu-ports
  identity:
    hostname: ubuntuservertest
    password: "$6$X/9uRC4wZBdgIY$iRnTxZFgfYgijdk19gxOos27S6yECKD/J/n0QiJ0AGRLNRXNlGuAh04XNaYp88J99jBq/6cGEeNbUlZ7MdLMt0"
    realname: testuser
    username: testuser
  keyboard: {layout: us, toggle: null, variant: ''}
  locale: en_US.UTF-8
  network:
    ethernets:
      enp1s0:
        critical: true
        dhcp4: true
    version: 2
  ssh:
    allow-pw: true
    authorized-keys: []
    install-server: true
  storage:
    config:
    - {ptable: gpt, path: /dev/vda, wipe: superblock-recursive, preserve: false, name: '',
      grub_device: false, type: disk, id: disk-vda}
    - {device: disk-vda, size: 512M, wipe: superblock, flag: boot, number: 1,
      preserve: false, grub_device: true, type: partition, id: partition-EFI}
    - {fstype: fat32, volume: partition-EFI, preserve: false, type: format, id: EFI}
    - {device: disk-vda, size: -1, wipe: superblock, flag: '', number: 2,
      preserve: false, grub_device: false, type: partition, id: partition-root}
    - {fstype: btrfs, volume: partition-root, preserve: false, type: format, id: format-root}
    - {path: /, device: format-root, type: mount, id: mount-1}
    - {path: /boot/efi, device: EFI, type: mount, id: mount-0}
    swap: {swap: 0}
  updates: security
  reporting:
    builtin:
      type: print

  user-data:
    write_files:
    - content: |
        cloud_init_has_run
      path: /cloud_init_flag
    users:
    - default
    - name: test123
      gecos: "Foo B. Bar"
      sudo: ALL=(ALL) NOPASSWD:ALL
      groups: users, admin
      passwd: $6$H0/auQFEFQw6V$e0I16c3F7pXepdQUh0iAr.FqQzysaAc2xp.h8UTPf6UUR11qtNw87WIsoScMwiB9tAZ1oXWDjeG7o5DthpGse1

[Dan Bungert (dbungert)]

For now, to get the behavior you want please move testuser to user-data.
Identity is not required if you're supplying user-data.

The merge of config today isn't sophisticated enough to do something like merge the identity section user into user-data.

FWIW, the docs at https://ubuntu.com/server/docs/install/autoinstall-reference look a bit misleading and make it sound like you'd get OK results with both, but today you definitely want to send all your users through user-data.