This bug was fixed in the package cloud-utils - 0.29-0ubuntu4
---------------
cloud-utils (0.29-0ubuntu4) yakkety; urgency=medium
* sync to trunk at revno 303
* mount-image-callback: support 'overlay' filesystem type rather
than ubuntu specific 'overlayfs' (LP: #1493188)
-- Scott Moser <smo...@ubuntu.com> Tue, 27 Sep 2016 21:20:58 -0400
** Changed in: cloud-utils (Ubuntu)
Status: Confirmed => Fix Released
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https://bugs.launchpad.net/bugs/1493188
Title:
"overlayfs" no longer exists
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