The image I used was based on ubuntu-26.04-desktop-amd64.iso.  I'll try
to figure out minimal steps to reproduce; I expect something like

    autoinstall:
        late-commands:
          - curtin in-target -- rm -rf /home
          - curtin in-target -- mkdir /home

would suffice, but of course this is not a full user-data file, and I
haven't yet verified that it reproduces what I've seen.

It will take me a couple of days, probably, depending on how busy I am
at work.

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https://bugs.launchpad.net/bugs/2150646

Title:
  Home directory has wrong ownership if the user exists but the home
  directory itself is missing when cloud-init runs on first boot

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