I don't think this is a correct test case for xenial; since the standard kvm images use the release kernel, which is 4.4, rather than the hwe-rolling kernel (4.8), the behavior will match the other 4.4-based image I already tested. We need a test case that will actually fail with the current cloud-init and succeed with the new one, which AIUI requires an image using the rolling kernel in xenial.
I don't think this is a correct test case for xenial; since the standard kvm images use the release kernel, which is 4.4, rather than the hwe-rolling kernel (4.8), the behavior will match the other 4.4-based image I already tested. We need a test case that will actually fail with the current cloud-init and succeed with the new one, which AIUI requires an image using the rolling kernel in xenial.