cloud-init in LXD triggers after network is up, so indeed, in your case
it won't run.

Your problem is that you have the network defined as DHCP so this will
hang your boot and cloud-init. If you had /etc/network/interfaces (or
the new cloud-init network-data stuff) marked as "manual", then the
network configuration step wouldn't hang and cloud-init would run.

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https://bugs.launchpad.net/bugs/1619238

Title:
  #cloud-config in user.user-data not running without ip

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