This bug was fixed in the package cloud-init - 0.7.9-87-gd23543eb-
0ubuntu1

---------------
cloud-init (0.7.9-87-gd23543eb-0ubuntu1) zesty; urgency=medium

  * debian/cloud-init.templates: add Bigstep to list of sources. (LP: #1676460)
  * New upstream snapshot.
    - net: in netplan renderer delete known image-builtin content.
      (LP: #1675576)
    - doc: correct grammar in capabilities.rst [David Tagatac]
    - ds-identify: fix detecting of maas datasource. (LP: #1677710)
    - netplan: remove debugging prints, add debug logging [Ryan Harper]
    - ds-identify: do not write None twice to datasource_list.
    - support resizing partition and rootfs on system booted without initramfs.
      (LP: #1677376) [Steve Langasek]
    - apt_configure: run only when needed. (LP: #1675185)
    - OpenStack: identify OpenStack by product 'OpenStack Compute'.
      (LP: #1675349)
    - GCE: Search GCE in ds-identify, consider serial number in check.
      (LP: #1674861)
    - Add support for setting hashed passwords [Tore S. Lonoy] (LP: #1570325)

 -- Scott Moser <smo...@ubuntu.com>  Thu, 30 Mar 2017 16:46:43 -0400

** Changed in: cloud-init (Ubuntu)
       Status: Confirmed => Fix Released

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https://bugs.launchpad.net/bugs/1677376

Title:
  growing partitions does not work when booted without initramfs

Status in cloud-init:
  Fix Committed
Status in cloud-init package in Ubuntu:
  Fix Released

Bug description:
  When booted without an initramfs, the root device will be /dev/root, not a
  named device. There is partial support for this when resizing filesystems,
  but not for growing partitions, without which it doesn't do much good.

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