Comment 8 for bug 1697209

I had a similar error with my 2.1.5+bzr5596-0ubuntu1~16.04.1.

Jun 29 08:41:25 nuc1-1 systemd[1]: Stopping LSB: Start NTP daemon...
Jun 29 08:41:25 nuc1-1 ntp[2504]: * Stopping NTP server ntpd
Jun 29 08:41:25 nuc1-1 ntp[2504]: ...done.
Jun 29 08:41:25 nuc1-1 ntpd[2438]: ntpd exiting on signal 15 (Terminated)
Jun 29 08:41:25 nuc1-1 ntpd[2438]: 192.168.122.1 local addr 192.168.100.113 -> <null>
Jun 29 08:41:25 nuc1-1 systemd[1]: Stopped LSB: Start NTP daemon.
Jun 29 08:41:25 nuc1-1 systemd[1]: Starting LSB: Start NTP daemon...
Jun 29 08:41:25 nuc1-1 ntp[2517]: * Starting NTP server ntpd
Jun 29 08:41:25 nuc1-1 ntp[2517]: /usr/sbin/ntpd: error while loading shared libraries: libcap.so.2: cannot stat shared object: Permission denied
Jun 29 08:41:25 nuc1-1 ntp[2517]: ...fail!
Jun 29 08:41:25 nuc1-1 systemd[1]: ntp.service: Control process exited, code=exited status=127
Jun 29 08:41:25 nuc1-1 systemd[1]: Failed to start LSB: Start NTP daemon.
Jun 29 08:41:25 nuc1-1 systemd[1]: ntp.service: Unit entered failed state.
Jun 29 08:41:25 nuc1-1 systemd[1]: ntp.service: Failed with result 'exit-code'.
Jun 29 08:41:25 nuc1-1 kernel: [ 46.122827] audit: type=1400 audit(1498725685.668:16): apparmor="DENIED" operation="getattr" info="Failed name lookup - disconnected path" error=-13 profile="/usr/sbin/ntpd" name="overlay/etc/ld.so.cache" pid=2526 comm="ntpd" requested_mask="r" denied_mask="r" fsuid=0 ouid=0
Jun 29 08:41:25 nuc1-1 kernel: [ 46.122846] audit: type=1400 audit(1498725685.668:17): apparmor="DENIED" operation="getattr" info="Failed name lookup - disconnected path" error=-13 profile="/usr/sbin/ntpd" name="lib/x86_64-linux-gnu/libcap.so.2.24" pid=2526 comm="ntpd" requested_mask="r" denied_mask="r" fsuid=0 ouid=0
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Cloud-init v. 0.7.9 running 'modules:config' at Thu, 29 Jun 2017 08:40:54 +0000. Up 14.84 seconds.
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: 2017-06-29 08:41:25,677 - cc_ntp.py[ERROR]: Failed to reload/start ntp service: Unexpected error while running command.
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Command: ['systemctl', 'reload-or-restart', 'ntp']
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Exit code: 1
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Reason: -
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Stdout: -
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Stderr: Job for ntp.service failed because the control process exited with error code. See "systemctl status ntp.service" and "journalctl -xe" for details.
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Traceback (most recent call last):
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: File "/usr/lib/python3/dist-packages/cloudinit/config/cc_ntp.py", line 78, in handle
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: reload_ntp(systemd=cloud.distro.uses_systemd())
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: File "/usr/lib/python3/dist-packages/cloudinit/config/cc_ntp.py", line 140, in reload_ntp
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: util.subp(cmd, capture=True)
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: File "/usr/lib/python3/dist-packages/cloudinit/util.py", line 1821, in subp
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: cmd=args)
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: cloudinit.util.ProcessExecutionError: Unexpected error while running command.
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Command: ['systemctl', 'reload-or-restart', 'ntp']
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Exit code: 1
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Reason: -
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Stdout: -
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: Stderr: Job for ntp.service failed because the control process exited with error code. See "systemctl status ntp.service" and "journalctl -xe" for details.
Jun 29 08:41:25 nuc1-1 cloud-init[1276]: 2017-06-29 08:41:25,729 - util.py[WARNING]: Running module ntp (<module 'cloudinit.config.cc_ntp' from '/usr/lib/python3/dist-packages/cloudinit/config/cc_ntp.py'>) failed
Jun 29 08:41:26 nuc1-1 systemd[1]: cloud-config.service: Main process exited, code=exited, status=1/FAILURE
Jun 29 08:41:26 nuc1-1 systemd[1]: Failed to start Apply the settings specified in cloud-config.
Jun 29 08:41:26 nuc1-1 systemd[1]: cloud-config.service: Unit entered failed state.
Jun 29 08:41:26 nuc1-1 systemd[1]: cloud-config.service: Failed with result 'exit-code'.
Jun 29 08:41:26 nuc1-1 systemd[1]: Starting Execute cloud user/final scripts...
Jun 29 08:41:28 nuc1-1 cloud-init[2529]: Powering node off.