>  If so, when doing a release upgrade, cloud-init will see a new python
version, clear it's cache, then run as if it was first boot again.

Ahh the cleared cache is what triggers cloud-init to re-run thereby
reapplying any user-data it detects on that subsequent boot. Since
default system configuration in this image /etc/cloud/cloud.cfg is to
lock_passwd cloud-init happily locks down that passwd access with that
leading ! in /etc/shadow

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https://bugs.launchpad.net/bugs/2075968

Title:
  cloud-init locks out user `ubuntu` after upgrade from 22.04 to 24.04

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