While you can workaround the issue with

```
sudo sed -i 's/ console=ttyS0//g' /etc/default/grub.d/50-cloudimg-settings.cfg
sudo update-grub
```

You need ttyS0 in grub in order to interact with vm guest using

```
virsh console <vm-name>
```

I added a bug to virtualbox as it could be a compound issue or an issue
on how they handle ttyS0 from os.
https://www.virtualbox.org/ticket/18463

** Bug watch added: Virtualbox Trac #18463
   http://www.virtualbox.org/ticket/18463

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https://bugs.launchpad.net/bugs/1573095

Title:
  Cloud images fail to boot when a serial port is not available

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