Thanks a lot for the info, Christian.
Let me answer your questions firstly:
- are your scripts triggered by cloud init
NO.
- if so in which config module/phase as I'm sure I have done cloud-init driven 
hostname changed?
- OR are your scripts triggered by open-vm-tools directly?
VMware Guest OS Customization works with either pure 'perl' scripts or 
cloud-init as the customization engine.
For 'perl' scripts customization, scripts are triggered by 
open-vm-tools.service, the 'hostnamectl' is the cmd in scripts to set hostname. 
And 'hostnamectl' has dependency on 'dbus.service'.
For 'cloud-init' customization, only 2 config files are copied to a folder by 
open-vm-tools.service, and then cloud-init-local.service read the config file 
from that folder to do the customization. This is the reason of "bug 1667831 to 
have open-vm-tools before cloud-init-local was by Sankar from VMWare". 
And AFAIK, cloud-init is not using 'hostnamectl' to set hostname for Ubuntu 
distro. so when do the 'cloud-init' customization on Ubuntu, there is no 
dependency on 'dbus.service'.

And Yes, I also noticed the cycle dependency was introduced if add 
'After=dbus.service' to 'open-vm-tools.service' when cloud-init*.services are 
also 
enabled.(https://bugs.launchpad.net/ubuntu/+source/cloud-init/+bug/1796875/comments/8)
So the 'after=dbus.service' should only be added when using perl scripts as 
customization engine.

see details in the workaround KB for Ubuntu18.04 Live Server 
https://kb.vmware.com/s/article/54986
For Set cloud-init as the customization engine: 
   no need add 'after=dbus.service' to open-vm-tools.service
For Set perl script as the customization engine:
   need add 'after=dbus.service' to open-vm-tools.service
   and also disable or remove cloud-init

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https://bugs.launchpad.net/bugs/1793715

Title:
  VMWare Guest OS Customization will fail for Ubuntu 18.04 Server
  LiveCD

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