This bug was fixed in the package cloud-initramfs-tools - 0.29ubuntu1
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cloud-initramfs-tools (0.29ubuntu1) yakkety; urgency=medium
* overlayroot: support 'overlay' filesystem explicitly rather than
relying on ubuntu specific kernel module 'overlayfs'. (LP: #1493188)
-- Scott Moser <[email protected]> Fri, 23 Sep 2016 17:00:37 -0400
** Changed in: cloud-initramfs-tools (Ubuntu Yakkety)
Status: Fix Committed => Fix Released
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https://bugs.launchpad.net/bugs/1493188
Title:
"overlayfs" no longer exists
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