@enr0n noticed jumps in time in dmesg that could cause this issue:

[Fri Oct  6 11:02:24 2023] systemd[1]: unit_file_build_name_map: normal unit 
file: /lib/systemd/system/multi-user.target
[Fri Oct  6 11:02:24 2023] systemd[1]: unit_file_build_name_map: normal unit 
file: /lib/systemd/system/system-update-pre.target
[Fri Oct  6 11:02:56 2023] systemd[1]: system-serial\x2dgetty.slice changed 
dead -> active
[Fri Oct  6 11:02:56 2023] systemd[1]: system-serial\x2dgetty.slice: Job 190 
system-serial\x2dgetty.slice/start finished, result=done
[Fri Oct  6 11:02:56 2023] systemd[1]: Created slice 
system-serial\x2dgetty.slice - Slice /system/serial-getty.
[Fri Oct  6 11:03:07 2023] hv_balloon: Max. dynamic memory size: 4096 MB
[Fri Oct  6 11:03:26 2023] systemd[1]: system-systemd\x2dfsck.slice changed 
dead -> active
[Fri Oct  6 11:03:26 2023] systemd[1]: system-systemd\x2dfsck.slice: Job 18 
system-systemd\x2dfsck.slice/start finished, result=done
[Fri Oct  6 11:03:26 2023] systemd[1]: Created slice 
system-systemd\x2dfsck.slice - Slice /system/systemd-fsck.
[Fri Oct  6 11:03:57 2023] systemd[1]: user.slice changed dead -> active
[Fri Oct  6 11:03:57 2023] systemd[1]: user.slice: Job 175 user.slice/start 
finished, result=done

** Also affects: systemd (Ubuntu)
   Importance: Undecided
       Status: New

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Touch seeded packages, which is subscribed to systemd in Ubuntu.
https://bugs.launchpad.net/bugs/2039571

Title:
  systemd-modules-load fails on Azure 23.10 images on arm64

Status in cloud-images:
  New
Status in systemd package in Ubuntu:
  New

Bug description:
  On some arm64 instances systemd-modules-load.service fails with the
  following error:

  $ sudo journalctl -u systemd-modules-load
  Oct 04 08:03:30 ubuntu systemd[1]: systemd-modules-load.service: start 
operation timed out. Terminating.
  Oct 04 08:03:30 ubuntu systemd[1]: systemd-modules-load.service: Main process 
exited, code=killed, status=15/TERM
  Oct 04 08:03:30 ubuntu systemd[1]: systemd-modules-load.service: Failed with 
result 'timeout'.
  Oct 04 08:03:30 ubuntu systemd[1]: Failed to start 
systemd-modules-load.service - Load Kernel Modules.

  It only fails on boot, when restarted manually the service runs fine.
  I can't find which module fails to load. The only kernel module that
  this service is supposed to load is multipathd and it appears to be
  loaded even when the service has failed.

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