This bug was fixed in the package cloud-init - 0.7.8-49-g9e904bb-0ubuntu1~16.04.1

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cloud-init (0.7.8-49-g9e904bb-0ubuntu1~16.04.1) xenial-proposed; urgency=medium

  * debian/cloud-init.postinst: update /etc/fstab on Azure to fix
    future resize operations. (LP: #1611074)
  * New upstream snapshot.
    - Add activate_datasource, for datasource specific code paths.
      (LP: #1611074)
    - systemd: cloud-init-local use RequiresMountsFor=/var/lib/cloud
      (LP: #1642062)

cloud-init (0.7.8-47-gb6561a1-0ubuntu1~16.04.1) xenial-proposed; urgency=medium

  * debian/cloud-init.templates: enable DigitalOcean by default [Ben Howard]
  * New upstream snapshot.
    - systemd/cloud-init-local.service:
      + replace 'Wants' and 'After' on local-fs.target with more granular
        After=systemd-remount-fs.service and RequiresMountsFor=/var/lib
        and Before=sysinit.target.
        This is done run sufficiently early enough to update /etc/fstab.
        (LP: #1611074)
      + add Before=NetworkManager.service so that cloud-init can render
        NetworkManager network config before it would apply them.
    - systemd/cloud-init.service:
      + add Before=sysinit.target and DefaultDependencies=no (LP: #1611074)
      + drop Requires=networking.service to work where networking.service is
        not needed.
      + add Conflicts=shutdown.target
      + drop unnecessary Wants=local-fs.target
    - net: support reading ipv6 dhcp config from initramfs [LaMont Jones]
      (LP: #1621615)
    - dmidecode: Allow dmidecode to be used on aarch64, and only attempt
      usage on x86, x86_64, and aarch64. [Robert Schweikert]
    - disk-config: udev settle after partitioning in gpt format.
      (LP: #1626243)
    - Add support for snap create-user on Ubuntu Core images. [Ryan Harper]
      (LP: #1619393)
    - Fix sshd restarts for rhel distros. [Jim Gorz]
    - Move user/group functions to new ug_util file [Joshua Harlow]
    - update Gentoo initscripts to run in the correct order [Matthew Thode]
    - MAAS: improve the debugging tool in datasource to consider
      config provided on kernel cmdline.
    - lxd: Update network config for LXD 2.3 [Stéphane Graber] (LP: #1640556)
    - Decode unicode types in decode_binary [Robert Schweikert]
    - Allow ephemeral drive to be unpartitioned [Paul Meyer]
    - subp: add 'update_env' argument which allows for more easily adding
      environment variables to a subprocess call.
    - Adjust mounts and disk configuration for systemd. (LP: #1611074)
    - DataSources:
      + Ec2: protect against non-dictionary in block-device-mapping.
      + AliYun: Add new datasource for Ali-Cloud ECS, that is
        available but not enabled by default [kaihuan.pkh]
      + DigitalOcean: use meta-data for network configuration and
        enable data source by default. [Ben Howard]
      + OpenNebula: replace parsing of 'ip' command with similar function
        available in cloudinit.net.  This fixed unit tests when running
        in environment with no networking.
    - doc changes:
      + Add documentation on stages of boot.
      + make the RST files consistently formated and other improvements.
      + fixed example to not overwrite /etc/hosts [Chris Glass]
      + fix spelling / typos in ca_certs and scripts_vendor.
      + improve HACKING.rst file
      + Add documentation for logging features. [Wesley Wiedenmeier]
      + Improve module documentation and doc cleanup. [Wesley Wiedenmeier]
    - code style and unit test changes:
      + pep8: fix style errors reported by pycodestyle 2.1.0
      + pyflakes: fix issue with pyflakes 1.3 found in ubuntu zesty-proposed.
      + Add coverage dependency to bddeb to fix package build.
      + Add coverage collection to tox unit tests. [Joshua Powers]
      + do not read system /etc/cloud/cloud.cfg.d (LP: #1635350)
      + tests: silence the Cheetah UserWarning about NameMapper C version.
      + Fix python2.6 things found running in centos 6.

 -- Scott Moser <email address hidden>  Fri, 18 Nov 2016 16:51:54 -0500