I don't think there's a sensible way of fixing this:

Ideally we'd have getty wait until users exist but there's no trigger /
phase of cloud-init that's specific to it creating users. We *could*
wait until cloud-init is "done" but in the case of more complex cloud-
init configurations that could be an entirely arbitrary (even infinite)
delay (waiting for network connections or arbitrary scripts to finish).
Meanwhile, the user creation could be complete, but the admin is unable
to login to the system to sort out networking (for example) because
cloud-init hasn't "finished".

I looked into the possibility of adding conditions (and some extra
activation triggers) on getty to cause it to wait until a (non-root)
local user appeared in passwd/shadow but this then breaks the scenario
where cloud-init is configured *not* to create any local users because
(for example) LDAP is going to be used.

I'm leaning towards closing this as "won't fix" at this point, although
first I would at least like to look into a first-time boot message
warning the user they should wait for cloud-init to complete.

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https://bugs.launchpad.net/bugs/1861128

Title:
  getty.target starts before cloud-config is done

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