Public bug reported:

1. % lsb_release -rd
Description:    Ubuntu 16.04.1 LTS
Release:        16.04

2. % apt-cache policy snapd
  Installed: 2.16
  Candidate: 2.16
  Version table:
 *** 2.16 100
        100 /var/lib/dpkg/status
     2.15.2ubuntu1 500
        500 xenial-updates/main amd64 
     2.0.2 500
        500 xenial/main amd64 Packages

3. snap prepare-image should look for a file called 'cloud.cfg' in the
gadget directory rather than 'cloud.conf' to match the naming convention
used in cloud-init documentation and packaging.

4. snap prepare-image is hard coded to look for 'cloud.conf' inside a
gadget snap.

** Affects: snapd (Ubuntu)
     Importance: Undecided
         Status: New

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  snap prepare-image expects 'cloud.conf' file, which should be

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