Did you try this from Rasmussen up above?

sudo touch /etc/udev/rules.d/40-vm-hotadd.rules
reboot

That fixed it for me on EC2

On Saturday, 3 September 2016, Andy Robertson <email address hidden>
wrote:

> All of my t2.micro & nano instances are affected by this in AWS EC2
> after upgrading to Ubuntu16.
>
> doing "echo 1 > /proc/sys/vm/drop_caches" (also tried echo 3) works for
> a short period of time, but it comes back within a few minutes.
>
> I moved a couple instances over to f1.micro on GCP / GCE (1 vCPU, 0.6 GB
> memory) and the problem seems to have gone away.  I can't do this with
> all of my instances yet though so a fix in AWS would be nice.
>
> --
> You received this bug notification because you are subscribed to the bug
> report.
> https://bugs.launchpad.net/bugs/1518457
>
> Title:
>   kswapd0 100% CPU usage
>
> Status in Linux:
>   Unknown
> Status in linux package in Ubuntu:
>   Confirmed
>
> Bug description:
>   As per bug 721896 and various others:
>
>   I'm on an AWS t2.micro instance (Xeon E5-2670, 991MiB of memory).
>   Occasionally (about once a day), kswapd0 falls into a busy loop and
>   spins on 100% CPU usage indefinitely. This can be provoked by
>   copying/writing large files (e.g. dding a 256MB file), but it happens
>   occasionally otherwise. System memory usage (not including
>   buffers/caches) currently sits at 36%, which is typical[1]. Initially
>   I had no swap space configured; I've since tried enabling a 256MB swap
>   file, but the problem continues to occur and no swap space is used.
>   The system can be recovered with `echo 1 > /proc/sys/vm/drop_caches`.
>
>   Happy to provide further information/take further debugging actions.
>
>
>   [1] Full output from `free`:
>                total       used       free     shared    buffers     cached
>   Mem:       1014936     483448     531488      28556       9756     112700
>   -/+ buffers/cache:     360992     653944
>   Swap:       262140          0     262140
>
>   ProblemType: Bug
>   DistroRelease: Ubuntu 15.10
>   Package: linux-image-4.2.0-18-generic 4.2.0-18.22
>   ProcVersionSignature: Ubuntu 4.2.0-18.22-generic 4.2.3
>   Uname: Linux 4.2.0-18-generic x86_64
>   AlsaDevices:
>    total 0
>    crw-rw---- 1 root audio 116,  1 Nov 19 19:40 seq
>    crw-rw---- 1 root audio 116, 33 Nov 19 19:40 timer
>   AplayDevices: Error: [Errno 2] No such file or directory: 'aplay'
>   ApportVersion: 2.19.1-0ubuntu5
>   Architecture: amd64
>   ArecordDevices: Error: [Errno 2] No such file or directory: 'arecord'
>   AudioDevicesInUse: Error: command ['fuser', '-v', '/dev/snd/seq',
> '/dev/snd/timer'] failed with exit code 1:
>   CRDA: N/A
>   Date: Fri Nov 20 20:44:30 2015
>   Ec2AMI: ami-1c552a76
>   Ec2AMIManifest: (unknown)
>   Ec2AvailabilityZone: us-east-1d
>   Ec2InstanceType: t2.micro
>   Ec2Kernel: unavailable
>   Ec2Ramdisk: unavailable
>   IwConfig: Error: [Errno 2] No such file or directory: 'iwconfig'
>   Lsusb: Error: command ['lsusb'] failed with exit code 1: unable to
> initialize libusb: -99
>   MachineType: Xen HVM domU
>   PciMultimedia:
>
>   ProcEnviron:
>    TERM=screen
>    PATH=(custom, no user)
>    LANG=en_US.UTF-8
>    SHELL=/bin/bash
>   ProcFB: 0 xen
>   ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-4.2.0-18-generic
> root=UUID=35bc01f4-4602-4823-976e-508edef899df ro console=tty1
> console=ttyS0 net.ifnames=0
>   RelatedPackageVersions:
>    linux-restricted-modules-4.2.0-18-generic N/A
>    linux-backports-modules-4.2.0-18-generic  N/A
>    linux-firmware                            N/A
>   RfKill: Error: [Errno 2] No such file or directory: 'rfkill'
>   SourcePackage: linux
>   UdevLog: Error: [Errno 2] No such file or directory: '/var/log/udev'
>   UpgradeStatus: No upgrade log present (probably fresh install)
>   dmi.bios.date: 05/06/2015
>   dmi.bios.vendor: Xen
>   dmi.bios.version: 4.2.amazon
>   dmi.chassis.type: 1
>   dmi.chassis.vendor: Xen
>   dmi.modalias: dmi:bvnXen:bvr4.2.amazon:bd05/
> 06/2015:svnXen:pnHVMdomU:pvr4.2.amazon:cvnXen:ct1:cvr:
>   dmi.product.name: HVM domU
>   dmi.product.version: 4.2.amazon
>   dmi.sys.vendor: Xen
>
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>