This bug was fixed in the package cloud-init - 0.7.7~bzr1106-0ubuntu1

---------------
cloud-init (0.7.7~bzr1106-0ubuntu1) wily; urgency=medium

  * New upstream snapshot.
    * Azure: remove strict dependency on walinux-agent, but still utilize
      it for the time being.
    * fix read_seeded that is used in seeding user-data and meta-data
      from additional locations (LP: #1455233)
    * fix bug preventing partitioning of disks in many cases. (LP: #1311463)
    * Azure: do not override hostname if user has set it (LP: #1375252)
    * Fix GCE datasource not handling per-instance SSH keys (LP: #1403617)
    * Allow specifying of uid in user/group config.

 -- Scott Moser <smo...@ubuntu.com>  Fri, 15 May 2015 17:04:19 -0400

** Changed in: cloud-init (Ubuntu)
       Status: Confirmed => Fix Released

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https://bugs.launchpad.net/bugs/1311463

Title:
  disk-setup unable to partition disks

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