this does also reproduce:
 qemu-system-x86_64 -enable-kvm  \
    -device virtio-scsi-pci,id=virtio-scsi-xkvm  \
    -device virtio-net-pci,netdev=net00 -netdev type=user,id=net00  \
    -drive file=my.img,id=disk00,if=none,format=qcow2,index=0  \
    -device virtio-blk,drive=disk00,serial=my.img  \
    -drive file=my-seed.img,id=disk01,if=none,format=raw,index=1  \
    -device virtio-blk,drive=disk01,serial=my-seed.img  \
    -snapshot -nographic -m 768
 
I don't plan on spending any more time on this unless there is some indication 
that cloud-init is doing something wrong.  It really does seem to me to be 
entropy related, and some optimization in this image has broken what was 
functional elsewhere.

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https://bugs.launchpad.net/bugs/1727358

Title:
  cloud-init is slow to complete init on minimized images

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