Public bug reported:

$ lxc init -c security.nesting=true ubuntu-daily:26.04 openldap-ppm-test 
--config=user.user-data='#cloud-config
runcmd:
  - echo '"'"'hai'"'"'
'
Creating openldap-ppm-test
$ lxc start openldap-ppm-test
$ lxc exec openldap-ppm-test -- cloud-init status --wait
2025-11-18 15:06:50,230 - util.py[WARNING]: Failed loading yaml blob. Yaml load 
allows (<class 'dict'>,) root types, but got str instead
...........status: done

this comes from /etc/cloud/cloud.cfg.d/90_dpkg_local_cloud_config.cfg with 
content:
# written by cloud-init-base debian package per preseed entry
#
10 cloud-init-base/local-cloud-config doesn't exist

which was created via /var/lib/dpkg/info/cloud-init-base.postinst 
handle_preseed_local_cloud_config() where
   process_debconf_setting local-cloud-config && ccfg="$RET" || :
seems to generate the failure message, which is just written down plainly as 
invalid yaml for cloud-init.

** Affects: cloud-init (Ubuntu)
     Importance: Undecided
         Status: New

** Description changed:

  $ lxc init -c security.nesting=true ubuntu-daily:26.04 openldap-ppm-test 
--config=user.user-data='#cloud-config
  runcmd:
-   - echo '"'"'hai'"'"'
+   - echo '"'"'hai'"'"'
  '
  Creating openldap-ppm-test
- $ lxc config device add openldap-ppm-test d01-src disk 
source=/home/jj/src/ubuntu/ path=/home/ubuntu/src shift=true
- Device d01-src added to openldap-ppm-test
  $ lxc start openldap-ppm-test
  $ lxc exec openldap-ppm-test -- cloud-init status --wait
  2025-11-18 15:06:50,230 - util.py[WARNING]: Failed loading yaml blob. Yaml 
load allows (<class 'dict'>,) root types, but got str instead
  ...........status: done
  
- 
- this comes from /etc/cloud/cloud.cfg.d/90_dpkg_local_cloud_config.cfg with 
content
+ this comes from /etc/cloud/cloud.cfg.d/90_dpkg_local_cloud_config.cfg with 
content:
  # written by cloud-init-base debian package per preseed entry
- # 
+ #
  10 cloud-init-base/local-cloud-config doesn't exist
  
  which was created via /var/lib/dpkg/info/cloud-init-base.postinst 
handle_preseed_local_cloud_config() where
-    process_debconf_setting local-cloud-config && ccfg="$RET" || :
+    process_debconf_setting local-cloud-config && ccfg="$RET" || :
  seems to generate the failure message, which is just written down plainly as 
invalid yaml for cloud-init.

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https://bugs.launchpad.net/bugs/2131809

Title:
  cloud-init status --wait fails with yaml load error

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