I'm marking this bug fixed by nature of correct xenial boot on openstack and 
lxd.
The bug was opened on another distro and related to a path that is not common 
in cloud-init on ubuntu.

The fix seems straight forward enough.

https://code.launchpad.net/~larsks/cloud-init/+git/cloud-
init/+merge/312612

I'm not happy with lack of positive validation of the fix, but that is
all we have.


** Tags removed: verification-needed
** Tags added: verification-done

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https://bugs.launchpad.net/bugs/1647910

Title:
  hostname is set incorrectly if localhostname is fully qualified

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