This bug was fixed in the package cloud-init - 0.7.8-11-g02f6c4b-
0ubuntu1

---------------
cloud-init (0.7.8-11-g02f6c4b-0ubuntu1) yakkety; urgency=medium

  * New upstream snapshot.
    - lxd: Update network config for LXD 2.3 [Stéphane Graber]
    - DigitalOcean: use meta-data for network configruation [Ben Howard]
    - ntp: move to run after apt configuration (LP: #1628337)

 -- Scott Moser <[email protected]>  Thu, 29 Sep 2016 14:30:15 -0400

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

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https://bugs.launchpad.net/bugs/1628337

Title:
  cloud-init tries to install NTP before even configuring the archives

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