------- Comment From mark...@us.ibm.com 2016-08-05 18:54 EDT-------
This seems to be working now.

Did the following:
- Created a base image that included the cloud-init material.  Cloned it and 
provided the cloudconfig drive.  Then did "sudo reboot" to soft reboot.  
Verified no more warnings at the "init-local" stage. Verified successful 
configuration from the cloudconfig drive.
- Ejected the cloudconfig drive.   Did another soft reboot.  Confirmed the boot 
messages still looked good.

Tested with the following levels:

ubuntu@ubuntu03:~$ cat /etc/lsb-release
DISTRIB_ID=Ubuntu
DISTRIB_RELEASE=16.04
DISTRIB_CODENAME=xenial
DISTRIB_DESCRIPTION="Ubuntu 16.04.1 LTS"
ubuntu@ubuntu03:~$
ubuntu@ubuntu03:~$ sudo apt-cache show cloud* | egrep "^Package|^Version"
Package: cloud-guest-utils
Version: 0.27-0ubuntu24
Package: cloud-initramfs-copymods
Version: 0.27ubuntu1
Package: cloud-initramfs-dyn-netconf
Version: 0.27ubuntu1
Package: cloud-init
Version: 0.7.7~bzr1256-0ubuntu1~16.04.1
ubuntu@ubuntu03:~$

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https://bugs.launchpad.net/bugs/1575055

Title:
  check_instance_id() error on reboots when using config-drive

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