Thank you @Littlecog for filing this bug and improving cloud-init. From
the looks of things cloud-init's warning could be a lot more informative
than just "device /dev/sdb with label=cidata not a valid seed".

It should have also told you the reason why. I'm guessing from your bug
report that you /dev/sdb has a user-data file and no meta-data file and
that's why it is being rejected. If this is not the case please feel
free to reopen this bug.


In the Ubuntu installer how to[1] it recommends that an empty meta-data file is 
also present on the disk in order to get detected properly.

Per cloud-init's NoCloud datasource code[2], it requires both meta-data
and user-data files on a disk labelled CIDATA to be valid. vendor-data
and network-config files are optional.


References:
[1]: installer how to for nocloud user-data 
https://canonical-subiquity.readthedocs-hosted.com/en/latest/howto/autoinstall-quickstart.html#using-another-volume-to-provide-the-autoinstall-configuration

[2] 
https://github.com/canonical/cloud-init/blob/25.3/cloudinit/sources/DataSourceNoCloud.py#L101
what I think I a seeing here is 

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

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https://bugs.launchpad.net/bugs/2127511

Title:
  Cloud-init consumes valid user-data but reports not a valid seed

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