To trigger this bug on Xenial, I did the following:

- launch a trusty instance
- Perform 'do-release-upgrade' on the trusty instance
- Reboot when complete
- Verify WARNING and Traceback present in logs
- Remove the log and reboot again
- Verify WARNING and Traceback present after second boot

To verify the bug fixed, follow the above steps, then additionally:
- Upgrade the cloud-init version to proposed
- Remove the log then reboot
- Verify no WARNING or Traceback present after boot

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https://bugs.launchpad.net/bugs/1899299

Title:
  do-release-upgrade from Trusty to Xenial breaks cloud-init init-local
  on reboot

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