I tested cloud-init 0.7.5-0ubuntu1.15 from -proposed for Trusty on Azure
and confirmed that the new package resolves the issue.

The upgrade path is also working as expected.  I first created an Ubuntu
14.04 VM using ARM.  After shutting down the VM via the Azure portal
(portal.azure.com) and then restarting it I saw that the Instance ID
changed (you can see this in /var/log/waagent.log).  However, the
symlink in /var/lib/cloud/instances/ that links the old Instance ID to
the VM unique ID had been created, and so cloud-init did not attempt to
reprovision the VM.

Thanks!
Steve

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https://bugs.launchpad.net/bugs/1506187

Title:
  [SRU] Azure: cloud-init should use VM unique ID

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