I've been able to reproduce this with a 16.04 Amazon EC2 exported image on 
VMware vSphere 6.7. The VM boot fine after adding a serial port.
We will try to reproduce the same workaround adding a serial console connection 
in OCI (which is the final target for that cloud image).

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https://bugs.launchpad.net/bugs/1573095

Title:
  Cloud images fail to boot when a serial port is not available

Status in cloud-images:
  Invalid
Status in cloud-init:
  Invalid
Status in Ubuntu:
  Invalid
Status in initramfs-tools package in Ubuntu:
  Fix Released

Bug description:
  I tried to launch a ubuntu 16.04 cloud image within KVM.
  The image is not booting up and hangs at

  "Btrfs loaded"

  Hypervisor env is Proxmox 4.1

  [racb: see comment 40 for minimal steps to reproduce using Ubuntu-
  provided tooling only]

  
  Related bugs:
   * bug 1016695: add console=tty1 to cloud-image kernel boot parameters
   * bug 1123220: cloud-image VM causes kernel panic if image is resized
   * bug 1061977: Machine fails to commission when console=ttyS0 is present on 
kernel opts
   * bug 1573095: Cloud images fail to boot when a serial port is not available 
   * bug 1122245: booting from a cloud image hangs until virsh console is used

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