Greg,
So digged a bit further, it seems that the ubuntu images do the right thing in 
that /etc/machine-id is not present in the image itself. I suspect your 
instances that you noticed this on were snapshotted from a once-booted instance 
or in some other way booted.  If that is the case, it would seem like the best 
advice would be for you to just remove the file before snapshotting an instance 
for re-use, so that new instances would get a new id generated.

Ideally in my mind, cloud-init or systemd or somethign would realize
that this is a new instance and do the right thing, but that seems non-
trivial at the moment. so i'll leave this as a wishlist bug on cloud-
init.

Thanks.
Scott

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

** Changed in: cloud-init (Ubuntu)
   Importance: Medium => Wishlist

** Changed in: livecd-rootfs (Ubuntu)
       Status: Confirmed => Invalid

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https://bugs.launchpad.net/bugs/1563951

Title:
  Cloud-init does not initialize systemd machine id

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