This bug was fixed in the package cloud-init - 0.7.7~bzr1212-0ubuntu1

---------------
cloud-init (0.7.7~bzr1212-0ubuntu1) xenial; urgency=medium

  * New upstream snapshot.
    - fix iscsi root by not writing interface as 'auto' when networking
      information comes from kernel command line (LP: #1568637)
    - apply networking less often, when possible only on first
      instance boot (LP: #1571004).
    - no longer delete /etc/network/interfaces.d/eth0.cfg on
      ubuntu (LP: #1563487)

 -- Scott Moser <[email protected]>  Fri, 15 Apr 2016 16:25:43 -0400

** Changed in: cloud-init (Ubuntu)
       Status: Confirmed => Fix Released

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https://bugs.launchpad.net/bugs/1568637

Title:
  network config of initramfs devices writes 'auto', breaking iscsi root
  boot

Status in cloud-init:
  Confirmed
Status in maas-images:
  Confirmed
Status in cloud-init package in Ubuntu:
  Fix Released

Bug description:
  when i removed the symlink in the maas ephemeral image from 
/etc/network/interfaces the iscsi root boot fails, and maas deployment would 
also fail.
  The real reason for the difference was that cloud-init was rendering 'auto' 
for the device that was brought up in the initramfs.

  Instead it needs to leave it to be manually controled (no 'auto' or
  'allow-hotplug').

  Related bugs:
   * bug 1570142: [open-isci]  net-interface-handler needs updating for newer 
ifupdown

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