I made a change in the cloud-init configuration:

--- version1.profile    2018-07-24 20:32:06.054307582 +0300
+++ version1.profile.after      2018-07-24 20:32:32.890558707 +0300
@@ -1,5 +1,5 @@
 config:
-  user.network-config: |
+  user.user-data: |
     network:
         version: 1
         config:

and now cloud-init works as expected on LXD.

I still get a non-fatal warning: 2018-07-24 17:29:04,515 -
__init__.py[WARNING]: Unhandled non-multipart (text/x-not-multipart)
userdata: 'b'network:'...'

Relevant discussion: https://github.com/lxc/lxd/issues/3347

Therefore, the workaround should be not to use `network-config` for
network configuration but use `user-data` instead?

** Bug watch added: LXD bug tracker #3347
   https://github.com/lxc/lxd/issues/3347

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https://bugs.launchpad.net/bugs/1686338

Title:
  cloud-init fails if no network config is set

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