Comment 12 for bug 1444992

The cloud image for Xenial is still affected by this bug. Deploying with nova:

$ nova boot --flavor m1.small --image ubuntu-xenial-daily-amd64-server-20170830.1-disk1.img xenial-iscsi1
$ nova boot --flavor m1.small --image ubuntu-xenial-daily-amd64-server-20170830.1-disk1.img xenial-iscsi2

$ ssh xenial-iscsi1 'sudo grep ^Init /etc/iscsi/initiatorname.iscsi'
Warning: Permanently added 'xenial-iscsi1,10.5.1.142' (ECDSA) to the list of known hosts.
InitiatorName=iqn.1993-08.org.debian:01:87d0bcc7edba
$ ssh xenial-iscsi2 'sudo grep ^Init /etc/iscsi/initiatorname.iscsi'
Warning: Permanently added 'xenial-iscsi2,10.5.1.143' (ECDSA) to the list of known hosts.
InitiatorName=iqn.1993-08.org.debian:01:87d0bcc7edba

Checking the image:
$ wget https://cloud-images.ubuntu.com/xenial/current/xenial-server-cloudimg-amd64.squashfs
$ unsquashfs xenial-server-cloudimg-amd64.squashfs
$ cat squashfs-root/etc/iscsi/initiatorname.iscsi
## DO NOT EDIT OR REMOVE THIS FILE!
## If you remove this file, the iSCSI daemon will not start.
## If you change the InitiatorName, existing access control lists
## may reject this initiator. The InitiatorName must be unique
## for each iSCSI initiator. Do NOT duplicate iSCSI InitiatorNames.
InitiatorName=iqn.1993-08.org.debian:01:87d0bcc7edba

Zesty works fine (the image generates a new name):
$ cat squashfs-root/etc/iscsi/initiatorname.iscsi
GenerateName=yes