This bug was fixed in the package cloud-init -
0.7.7-10-gbc2c326-0ubuntu1

---------------
cloud-init (0.7.7-10-gbc2c326-0ubuntu1) yakkety; urgency=medium

  * New upstream snapshot:
    - DigitalOcean: use the v1.json endpoint
    - MAAS: add vendor-data support (LP: #1612313)
    - Upgrade the minimum configobj package to one new enough to work
    - ConfigDrive: recognize 'tap' as a link type.  (LP: #1610784)
    - NoCloud: fix bug providing network-interfaces via meta-data.
      (LP: #1577982)
    - Add distro tags on config modules that should have it
    - add ntp config module
    - SmartOS: more improvements for network configuration

 -- Scott Moser <[email protected]>  Fri, 12 Aug 2016 17:18:01 -0400

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

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https://bugs.launchpad.net/bugs/1610784

Title:
  cloud-init openstack.py code does not recognize network type 'tap'

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