How are you running Python 3.9 in Focal? Are you using the cloud-init
package provided by Apt? Your error shows a crash due to the jinja2
library not existing, but jinja2 is a dependency of cloud-init. The
python3-jinja2 package should have been installed when you installed
cloud-init. Up until now, cloud-init could still run without this
dependency installed, but that doesn't change that it has been a
dependency, so I don't see evidence of a problem here.

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

** Changed in: cloud-init (Ubuntu Focal)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/2066066

Title:
  cloud-init startup failure with Python 3.9.5, Ubuntu Focal

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