This is the same symptom as a GCP issue raised.

The following commit[1] introduced this change in behavior for cloud-
init by correcting an bug in the behavior of cloud-init which didn't
apply networking changes in cloud-init "init" stage after writing files.
This version of cloud-init 2.3.

google-guest-agent and cloud-init both race trying to setup networking
on a newly booting VM as of cloud-init 21.2-43-g184c836a-0ubuntu1  did
introduce a change that now calls "netplan apply" after cloud-init
writes fallback network configuration files which request dhcp on the
primary nic.


We were able to reproduce this same issue with latest images rolled out to GCP 
containing cloud-init 21.3. The `netplan apply` called by cloud-init does 
disrupt the dhclient calls that google-guest-agent uses to create the initial 
network config and sets up google project users and keys on the VM 
https://github.com/GoogleCloudPlatform/guest-agent#network

Cloud-init team is working this issue as top-priority.
Workarounds for this issue are:
1. rebooting the instance after launch which allows google-guest-agent.service 
to come back up without cloud-init interaction


2. 


Workarounds at the moment launch a VM with updated cloud-init 21.3 with the 
following user-data:

cat > clouinit_start_google_guest_agent.yaml <<EOF
#cloud-config
runcmd: 
 - systemctl start google-guest-agent.service
EOF

root@publishing-f:~# gcloud compute instances create
sf2-impish-v20200720 --zone us-west1-a --network "default" --no-restart-
on-failure --image-project ubuntu-os-cloud-devel --image daily-
ubuntu-2110-impish-v20210720 --machine-type n1-standard-2 --metadata-
from-file user-data=cloudinit_start_google_guest_agent.yaml

# see ssh working on that image launch
gcloud  compute ssh sf2-impish-v20200720 --zone us-west1-a

** Changed in: cloud-init (Ubuntu Impish)
       Status: Incomplete => Triaged

** Changed in: google-guest-agent (Ubuntu Impish)
       Status: New => In Progress

** Changed in: cloud-init (Ubuntu Impish)
   Importance: Undecided => Critical

** Changed in: google-guest-agent (Ubuntu Impish)
   Importance: Undecided => Critical

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https://bugs.launchpad.net/bugs/1938299

Title:
  Unable to SSH Into Instance when deploying Impish 21.10

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