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 copies 'cloud.conf' file to 
  Using the config dot dir prevents clobbering the default cloud-init config 
file that's present in images that use cloud-init.

4. snap prepare-image clobbers /etc/cloud/cloud.cfg; un-aware users will
find that they need to know the contents of what cloud.cfg should look
like and carry that with their gadget rather than just the few changes
they might want to make (like override which datasources to search or
which config modules to run).

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

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  snap prepare-image should not overwrite /etc/cloud/cloud.cfg in final

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