@gjolly There were networking-related changes in systemd which could have 
caused this but I also see that the kernel packages also changed between the 
Azure images:
-ii  linux-image-azure                  5.8.0.1017.19+21.04.14
...
+ii  linux-image-5.8.0-1022-azure       5.8.0-1022.24+21.04.2

Could you please prepare an image that has the older kernel and newer
systemd to rule out kernel changes causing the issue?

Also do you still observe the issue in Impish? It has systemd 248 now.

** Changed in: systemd (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/1919177

Title:
  Azure: issues with accelerated networking on Hirsute

Status in cloud-init:
  Incomplete
Status in cloud-init package in Ubuntu:
  Incomplete
Status in linux-azure package in Ubuntu:
  New
Status in systemd package in Ubuntu:
  Incomplete

Bug description:
  [General]

  On Azure, when provisioning a Hirsute VM with Accelerated Networking
  enabled, sometimes part of the cloud-init configuration is not
  applied.

  Especially, in those cases, the public SSH key is not setup properly.

  [how to reproduce]

  Start a VM with AN enabled:

  ```
  az vm create --name "$VM_NAME --resource-group "$GROUP" --location "UK South" 
 --image 
'Canonical:0001-com-ubuntu-server-hirsute-daily:21_04-daily-gen2:latest' --size 
Standard_F8s_v2 --admin-username ubuntu --ssh-key-value "$SSH_KEY" 
--accelerated-networking
  ```

  After a moment, try to SSH: if you succeed, delete and recreate a new
  VM.

  [troubleshooting]

  To be able to connect into the VM, run:

  az vm run-command invoke -g "$GROUP" -n "$VM_NAME" --command-id 
RunShellScript --scripts "sudo -u ubuntu ssh-import-id $LP_USERNAME"
  ```

  In "/run/cloud-init/instance-data.json", I can see:
  ```
       "publicKeys": [
        {
         "keyData": "<my-pub-key>",
         "path": "/home/ubuntu/.ssh/authorized_keys"
        }
       ],
  ```

  as expected.

  [workaround]

  As mentioned, Azure allows the user to run command into the VM without
  SSH connection. To do so, one can use the Azure CLI:

  az vm run-command invoke -g "$GROUP" -n "$VM_NAME" --command-id
  RunShellScript --scripts "sudo -u ubuntu ssh-import-id $LP_USERNAME"

  This example uses "ssh-import-id" but it's also possible to just echo
  a given public key into /home/ubuntu/.ssh/authorized_keys

  NOTE: this will only solves the SSH issue, I do not know if this bug
  affects other things. If so the user would have to apply those things
  manually.

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