Due to snapd still lopoing in this case (bug 1782602) 
The sum of changes is:
$ systemctl disable snapd.seeded.service
$ systemctl disable snapd.service

cat /etc/fstab 
LABEL=cloudimg-rootfs   /        ext4   defaults        0 0
#LABEL=UEFI     /boot/efi       vfat    defaults        0 0

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https://bugs.launchpad.net/bugs/1732028

Title:
  timeout in iscsi boot fail with overlayroot [open-iscsi autopkg tests
  on LP Infra]

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