Yep, that's what I've found; cloud-init is just waiting for its later
stages to run, which are blocked by snapd.seeded.service exiting.

** Changed in: cloud-init
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/1905493

Title:
  cloud-init status --wait hangs indefinitely in a nested lxd container

Status in cloud-init:
  Invalid
Status in snapd:
  Confirmed
Status in dbus package in Ubuntu:
  New
Status in systemd package in Ubuntu:
  Invalid

Bug description:
  When booting a nested lxd container inside another lxd container (just
  a normal container, not a VM) (i.e. just L2), using cloud-init -status
  --wait, the "." is just printed off infinitely and never returns.

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