Comment 10 for bug 930430

It would appear that the problem happens because of twistd's default behavior when daemonizing. It always sets umask to 0077. On non-local images, we don't daemonize because the agents are run via upstart in --nodaemonize mode.

I have a fix for this in the local-cloud-img branch, which is to explicitly set the umask back to 0022. This might also have the effect of opening up the permissions a bit on the lxc containers so normal users can poke around in the rootfs if they have sufficient perms (though that may not be desirable since uids will not match up properly).