Comment 18 for bug 1727358

this does also reproduce:
 qemu-system-x86_64 -enable-kvm \
    -device virtio-scsi-pci,id=virtio-scsi-xkvm \
    -device virtio-net-pci,netdev=net00 -netdev type=user,id=net00 \
    -drive file=my.img,id=disk00,if=none,format=qcow2,index=0 \
    -device virtio-blk,drive=disk00,serial=my.img \
    -drive file=my-seed.img,id=disk01,if=none,format=raw,index=1 \
    -device virtio-blk,drive=disk01,serial=my-seed.img \
    -snapshot -nographic -m 768

I don't plan on spending any more time on this unless there is some indication that cloud-init is doing something wrong. It really does seem to me to be entropy related, and some optimization in this image has broken what was functional elsewhere.