I have some further information:
The bug occurs when there is a delay in network traffic being routed AND
the apt http_proxy option is used. The network delay could be due to
several issues but the most common (and easy to reproduce) is STP on the
network switch or software bridge.
In case of network delay withOUT the http_proxy option cloud-init will
retry fetching apt information logging the following message in a loop:
cloud-init[449]: W: Tried to start delayed item
http://deb.debian.org/debian trixie InRelease, but failed
Once the network is routing traffic the packages will be installed and
the installation completed successfully.
However when apt http_proxy is set the installation errors out
immediately without retrying.
The behaviour I would expect is that both with and without apt
http_proxy, cloud-init will retry until a timeout occurs (say 120
seconds). Ideally logging the "Tried to start..." line one a second
rather than as many time as possible.
Laurens