Public bug reported:

Bug present in: Ubuntu 14.04 LTS, cloud-init 0.7.5-0ubuntu1

In ssh_util.py, setup_user_keys, which is called by
config.cc_ssh.apply_credentials, changes the permissions of the
directory into which the new user's public ssh key is written.

This directory is found by parsing /etc/ssh/sshd_config for the value of
AuthorizedKeysFile and calling dirname.

In our case, the value of AuthorizedKeysFile is
/etc/authorized_keys.d/%u.pub. This means that cloud-init chmods
/etc/authorized_keys.d to 0700, preventing any user from logging in.

My proposed solution is for setup_user_keys to only chmod and chown the
directory and pubkey file if the file is contained within the user's
home directory.

** Affects: cloud-init (Ubuntu)
     Importance: Undecided
         Status: New

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https://bugs.launchpad.net/bugs/1340901

Title:
  ssh_util.setup_user_keys restricts permission on ssh public keys dir,
  preventing login

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