This bug was fixed in the package uvtool - 0~git169-0ubuntu1.20.04.1

---------------
uvtool (0~git169-0ubuntu1.20.04.1) focal; urgency=medium

  [ Thibault Ferrante ]
  * Continue waiting while pam_nologin is active in the VM (LP: #2039441)

 -- Agathe Porte <[email protected]>  Fri, 02 Feb 2024 10:53:45
+0100

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https://bugs.launchpad.net/bugs/2039441

Title:
  "System is booting up. Unprivileged users are not permitted to log in
  yet." causes wait subcommand to fail

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