This also happens in Bionic minimal images and seems to be a simple race
where the daemon is launched when the device is not yet visible.

It seems Fedora had the same or a similar issue:

https://bugzilla.redhat.com/show_bug.cgi?id=1195029

>From the conversation in that bug report, my understanding is that this
daemon supports features that can be enabled/disabled while the system
is live and that the daemon should therefore be launched/stopped
dynamically when the /dev/vmbus/hv_kvp device node comes or goes.

Since this race condition happening or not happening may depend on host,
hypervisor and boot speed, it could pop up also on existing releases and
thus should probably be treated with a certain amount of urgency.

** Bug watch added: Red Hat Bugzilla #1195029
   https://bugzilla.redhat.com/show_bug.cgi?id=1195029

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Title:
  [Hyper-V] KVP daemon fails to start on first boot of disco VM

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