Thanks for the offer to cloud-init! We'll likely take you up on that
soon.

It looks like your bug was something introduced in the last release, but it was 
a particularly instance of a more general change in cloud-init. Cloud-init will 
exit 2 when it hits recoverable errors. This is new behavior in 23.4 and 
documented at
https://docs.cloud-init.io/en/latest/reference/breaking_changes.html#added-status-code-for-recoverable-error
and
https://docs.cloud-init.io/en/latest/explanation/failure_states.html#error-codes

This behavior was patched out of Ubuntu 22.04 and earlier to avoid
breaking changes.

You reported one particular instance of this behavior, and it looks like
we fixed that here, but unfortunately it looks like a few more exist
that we need to fix in the cloud-init code.

We can fix the remaining issues in the next cloud-init release.

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https://bugs.launchpad.net/bugs/2094857

Title:
  cloud-init exits 2 if IMDS connectivity fails

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