This bug was fixed in the package cloud-init - 0.7.7~bzr1182-0ubuntu1
---------------
cloud-init (0.7.7~bzr1182-0ubuntu1) xenial; urgency=medium
* New upstream snapshot.
* systemd changes enforcing intended ordering (cloud-init-local.service
before networking and cloud-init.service before it comes up).
* when reading dmidecode data, return found but unset value as "" rather
than failing to decode that value.
* add default user to 'lxd' group and create groups when necessary
(LP: #1539317)
* No longer run pollinate in seed_random (LP: #1554152)
* Enable BigStep data source.
-- Scott Moser <smo...@ubuntu.com> Mon, 14 Mar 2016 09:58:56 -0400
** Changed in: cloud-init (Ubuntu)
Status: Confirmed => Fix Released
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https://bugs.launchpad.net/bugs/1539317
Title:
default user should be in the lxd group
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