I'm closing this as 'Incomplete'.  The bug was either simply with apt
sources being out of date or with possible host resolution issue or
archive inconsistency.

There was a period of time when ubuntu archives on ec2 were broken.

** Changed in: cloud-init (Ubuntu)
       Status: Triaged => Incomplete

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https://bugs.launchpad.net/bugs/652312

Title:
  apt cache not up to date on first boot

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