> It seems that PVE considers the cloud-init drive as a local resource that 
> cannot be moved. After removing the cloud-init drive from the VM, the 
> migration succeeded.
> 
> IMHO, the cloud-init drive could be treated just like a normal disk image 
> that could be dd'ed and copied to another node.
> 
> Is this a bug or by design? If so, I could file a report at Bugzilla.

AFAIK this bug is already fixed - maybe you run an old version? What is the 
output of

# pveversion -v

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