Hey folks, I believe that this has been fixed in cloud-init 20.3
(specifically this commit: https://github.com/canonical/cloud-
init/commit/0755cff078d5931e1d8e151bdcb84afb92bc0f02) so I'm going to
move this to Fix Released.

If you are seeing this error on an earlier version of cloud-init, it
generally indicates that cloud-init failed on a _previous_ boot (because
before that fix, a failed boot meant it would incorrectly create a
directory where a symlink should have been, leading to the
`IsADirectoryError` when the old not-actually-a-symlink is `rm`d on
subsequent boots).  If you can identify the cause of this earlier
failure, please feel free to file a bug for it!


Thanks,

Dan

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

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https://bugs.launchpad.net/bugs/1531880

Title:
  Failed to start Initial cloud-init job (pre-networking)

Status in cloud-init:
  Fix Released

Bug description:
  Linux Ubuntu-Gnome-Server 4.2.0-22-generic #27-Ubuntu SMP Thu Dec 17
  22:57:08 UTC 2015 x86_64

  Cloud-init 0.7.7

  systemctl -l  status cloud-init-local
  ● cloud-init-local.service - Initial cloud-init job (pre-networking)
     Loaded: loaded (/lib/systemd/system/cloud-init-local.service; enabled; 
vendor preset: enabled)
     Active: failed (Result: exit-code) since Thu 2016-01-07 15:34:33 CET; 6min 
ago
    Process: 961 ExecStart=/usr/bin/cloud-init init --local (code=exited, 
status=1/FAILURE)
   Main PID: 961 (code=exited, status=1/FAILURE)

  Jan 07 15:34:33 Ubuntu-Gnome-Server cloud-init[961]: File 
"/usr/lib/python3/dist-packages/cloudinit/util.py", line 1547, in del_file
  Jan 07 15:34:33 Ubuntu-Gnome-Server cloud-init[961]: raise e
  Jan 07 15:34:33 Ubuntu-Gnome-Server cloud-init[961]: File 
"/usr/lib/python3/dist-packages/cloudinit/util.py", line 1544, in del_file
  Jan 07 15:34:33 Ubuntu-Gnome-Server cloud-init[961]: os.unlink(path)
  Jan 07 15:34:33 Ubuntu-Gnome-Server cloud-init[961]: IsADirectoryError: 
[Errno 21] Is a directory: '/var/lib/cloud/instance'
  Jan 07 15:34:33 Ubuntu-Gnome-Server cloud-init[961]: 
------------------------------------------------------------
  Jan 07 15:34:33 Ubuntu-Gnome-Server systemd[1]: cloud-init-local.service: 
Main process exited, code=exited, status=1/FAILURE
  Jan 07 15:34:33 Ubuntu-Gnome-Server systemd[1]: Failed to start Initial 
cloud-init job (pre-networking).
  Jan 07 15:34:33 Ubuntu-Gnome-Server systemd[1]: cloud-init-local.service: 
Unit entered failed state.
  Jan 07 15:34:33 Ubuntu-Gnome-Server systemd[1]: cloud-init-local.service: 
Failed with result 'exit-code'.

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