diff -Nru cloud-init-20.4/cloudinit/ssh_util.py cloud-init-20.4.1/cloudinit/ssh_util.py
--- cloud-init-20.4/cloudinit/ssh_util.py	2020-11-24 17:38:50.000000000 +0000
+++ cloud-init-20.4.1/cloudinit/ssh_util.py	2021-01-15 15:53:27.000000000 +0000
@@ -262,13 +262,13 @@
 
         except (IOError, OSError):
             # Give up and use a default key filename
-            auth_key_fns.append(default_authorizedkeys_file)
+            auth_key_fns[0] = default_authorizedkeys_file
             util.logexc(LOG, "Failed extracting 'AuthorizedKeysFile' in SSH "
                         "config from %r, using 'AuthorizedKeysFile' file "
                         "%r instead", DEF_SSHD_CFG, auth_key_fns[0])
 
-    # always store all the keys in the first file configured on sshd_config
-    return (auth_key_fns[0], parse_authorized_keys(auth_key_fns))
+    # always store all the keys in the user's private file
+    return (default_authorizedkeys_file, parse_authorized_keys(auth_key_fns))
 
 
 def setup_user_keys(keys, username, options=None):
diff -Nru cloud-init-20.4/debian/changelog cloud-init-20.4.1/debian/changelog
--- cloud-init-20.4/debian/changelog	2021-01-11 22:31:19.000000000 +0000
+++ cloud-init-20.4.1/debian/changelog	2021-01-18 15:55:29.000000000 +0000
@@ -1,3 +1,11 @@
+cloud-init (20.4.1-0ubuntu1~18.04.1) bionic; urgency=medium
+
+  * New upstream release. (LP: #1911680)
+    - Release 20.4.1
+    - Revert "ssh_util: handle non-default AuthorizedKeysFile config (#586)"
+
+ -- Daniel Watkins <oddbloke@ubuntu.com>  Mon, 18 Jan 2021 10:55:29 -0500
+
 cloud-init (20.4-0ubuntu1~18.04.2) bionic; urgency=medium
 
   * cherry-pick 4f62ae8d: Fix regression with handling of IMDS ssh keys
diff -Nru cloud-init-20.4/tests/unittests/test_sshutil.py cloud-init-20.4.1/tests/unittests/test_sshutil.py
--- cloud-init-20.4/tests/unittests/test_sshutil.py	2020-11-24 17:38:50.000000000 +0000
+++ cloud-init-20.4.1/tests/unittests/test_sshutil.py	2021-01-15 15:53:27.000000000 +0000
@@ -593,7 +593,7 @@
             fpw.pw_name, sshd_config)
         content = ssh_util.update_authorized_keys(auth_key_entries, [])
 
-        self.assertEqual(authorized_keys, auth_key_fn)
+        self.assertEqual("%s/.ssh/authorized_keys" % fpw.pw_dir, auth_key_fn)
         self.assertTrue(VALID_CONTENT['rsa'] in content)
         self.assertTrue(VALID_CONTENT['dsa'] in content)
 
@@ -610,7 +610,7 @@
         sshd_config = self.tmp_path('sshd_config')
         util.write_file(
             sshd_config,
-            "AuthorizedKeysFile %s %s" % (user_keys, authorized_keys)
+            "AuthorizedKeysFile %s %s" % (authorized_keys, user_keys)
         )
 
         (auth_key_fn, auth_key_entries) = ssh_util.extract_authorized_keys(
@@ -618,7 +618,7 @@
         )
         content = ssh_util.update_authorized_keys(auth_key_entries, [])
 
-        self.assertEqual(user_keys, auth_key_fn)
+        self.assertEqual("%s/.ssh/authorized_keys" % fpw.pw_dir, auth_key_fn)
         self.assertTrue(VALID_CONTENT['rsa'] in content)
         self.assertTrue(VALID_CONTENT['dsa'] in content)