Thank you for your reply Luca, 
In general your work flow is helpful and makes sense to me.  

I meant to say above- "As part of the template creation process ***the Ovirt 
docs*** say to seal the VM".  

So I think I understand that you need to use both processes (seal template + 
cloudinit) to get everything to work as desired.  I'd still appreciate any more 
specifics about what sealing a VM does.
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