James,
We believe we have a fix for this now in trunk and will be uploading eventually 
to Ubuntu 16.04.
Your use case of running 'cloud-init init' after upgrade (without first running 
'cloud-init init --local') is something we're confused by.

Is there a reason that you're doing that?  Normally cloud-init is just
run on boot.

Thanks.

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

Title:
  17.1 update breaks EC2 nodes

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