Is is possible for you to paste the entire /var/log/cloud-init.log file?
The attached log only shows one stage of cloud-init boot.

In particular, cloud-init local mode will attempt to bring up a network
interface to talk to Ec2 metadata service to collect network config;
Given the failure path in the logs, it would indicate that init-local
should fail as well and we'd like to confirm this path.

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https://bugs.launchpad.net/bugs/1732917

Title:
  17.1 update breaks EC2 nodes

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