I think I've found the problem:

environs/cloudinit/cloudinit.go:280

                        fmt.Sprintf(
                                `[ -e /home/ubuntu ] && (printf '%%s\n' %s > 
/home/ubuntu/.juju-proxy && chown ubuntu:ubuntu /home/ubuntu/.juju-proxy)`,
                                
shquote(cfg.ProxySettings.AsScriptEnvironment())))

It looks like Juju assumes that the ubuntu user and groups exist if
/home/ubuntu exists. I had a /home/ubuntu symlink on my laptop for
debugging elsewhere, but no actual ubuntu user (that only existed in a
schroot environment). Removing the symlink worked around the problem.

Max, please could you check your system for /home/ubuntu?

The correct way to do this is to also check for the ubuntu user and
group, eg. using "getent passwd ubuntu" and "getent group ubuntu".

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https://bugs.launchpad.net/bugs/1328958

Title:
  Local provider run on server images requires an ubuntu user

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