Just built the deb and validated behavior on Xenial. IMDS is still queried and 
exists in instance-data.json, but that configuration is not used to return 
network_config note the v1 in
DatasourceAzure.network_config

sudo python3 -c "from cloudinit.stages import _pkl_load; 
print(_pkl_load('/var/lib/cloud/instance/obj.pkl').network_config)"
sudo: unable to resolve host SRU-worked-azure
{'version': 1, 'config': [{'mac_address': '00:0d:3a:04:3c:ea', 'type': 
'physical', 'subnets': [{'type': 'dhcp'}], 'name': 'eth0', 'params': 
{'device_id': '0x3', 'driver': 'hv_netvsc'}}]}

-- 
https://code.launchpad.net/~chad.smith/cloud-init/+git/cloud-init/+merge/356888
Your team cloud-init commiters is requested to review the proposed merge of 
~chad.smith/cloud-init:xenial/dont-render-network-from-imds into 
cloud-init:ubuntu/xenial.

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