Comment 4 for bug 1961832

Thanks for testing James. But that's different from what I'm seeing.

True full reproducer for me:

Host: Fedora 35

git clone https://github.com/virt-manager/virt-manager
cd virt-manager
wget https://cloud-images.ubuntu.com/jammy/current/jammy-server-cloudimg-amd64-disk-kvm.img
# change image root password to 'root'
virt-customize -a jammy-server-cloudimg-amd64-disk-kvm.img --root-password password:root
./virt-install --osinfo ubuntu20.04 --disk jammy-server-cloudimg-amd64-disk-kvm.img --cloud-init

<console spew>

root@ubuntu:~# cat /run/cloud-init/ds-identify.log | grep FS_LABELS
FS_LABELS=UEFI,UEFI,cloudimg-rootfs
root@ubuntu:~# DI_LOG=stderr /usr/lib/cloud-init/ds-identify --force | grep FS_LABELS
FS_LABELS=cidata,UEFI,UEFI,cloudimg-rootfs

ds-identify.log is from cloud-init boot up, FS_LABELS shows that cidata wasn't detected.
But when re-running with --force, once logged in, the label is showing up.

If that's not reproducing for you I can come probably wrangle up a straight qemu reproducer too