Looks like this issue is related: https://bugs.launchpad.net/cloud-
init/+bug/1877491

I've verified now that using cloud-init `package_upgrade: true` using an
Ubuntu AMI from later than June 1 avoids the problem described in this
ticket.

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https://bugs.launchpad.net/bugs/1889509

Title:
  grub boot error : "symbol 'grub_calloc' not found

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