Can confirm this bug, attached is a screenshot. The VM will hang and
have a CPU load of 100%, but the boot will never continue.

** Attachment added: "xenial-boot-freeze.png"
   
https://bugs.launchpad.net/cloud-init/+bug/1573095/+attachment/4645921/+files/xenial-boot-freeze.png

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

Title:
  16.04 cloud image hangs at first boot

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