Comment 18 for bug 2049860

@DisatesR : if you're not seeing a 50-cloud-init.conf file, it indicates to me that cloud-init is failing to parse the cloud_init configuration properly, and thus not adding the required configuration to /etc/ssh/sshd_config.d/

could you provide your entire cloud config? you can also use cloud-init to verify your user-data

https://cloudinit.readthedocs.io/en/latest/howto/debug_user_data.html