This is because CONFIG_BASE_SMALL is set to 1 in the kvm kernels. When
CONFIG_BASE_SMALL=1, the maximum number of PIDs is (PAGE_SIZE * 8),
which comes out to (4096 * 8) = 32768 on amd64. When CONFIG_BASE_SMALL=0
(like in normal kernels), the maximum number of PIDs for amd64 is (4 *
1024 * 1024) = 4194304.

The correct solution here is to fix the systemd unit.

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https://bugs.launchpad.net/bugs/1888001

Title:
  Focal minimal cloud image: failed to apply kernel variables

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