This bug was fixed in the package systemd - 235-3ubuntu3

---------------
systemd (235-3ubuntu3) bionic; urgency=medium

  * netwokrd: add support for RequiredForOnline stanza. (LP: #1737570)
  * resolved.service: set DefaultDependencies=no (LP: #1734167)
  * systemd.postinst: enable persistent journal. (LP: #1618188)
  * core: add support for non-writable unified cgroup hierarchy for container 
support.
    (LP: #1734410)

 -- Dimitri John Ledkov <x...@ubuntu.com>  Tue, 12 Dec 2017 13:25:32
+0000

** Changed in: systemd (Ubuntu Bionic)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1734167

Title:
  DNS doesn't work in no-cloud as launched by ubuntu

Status in cloud-init:
  Confirmed
Status in cloud-init package in Ubuntu:
  Confirmed
Status in systemd package in Ubuntu:
  Fix Released
Status in cloud-init source package in Zesty:
  Fix Released
Status in systemd source package in Zesty:
  Fix Released
Status in cloud-init source package in Artful:
  Confirmed
Status in systemd source package in Artful:
  In Progress
Status in cloud-init source package in Bionic:
  Confirmed
Status in systemd source package in Bionic:
  Fix Released

Bug description:
  I use no-cloud to test the kernel in CI (I am maintainer of the bcache
  subsystem), and have been running it successfully under 16.04 cloud
  images from qemu, using a qemu command that includes:

  -smbios "type=1,serial=ds=nocloud-
  net;s=https://raw.githubusercontent.com/mlyle/mlyle/master/cloud-
  metadata/linuxtst/"

  As documented here:

  http://cloudinit.readthedocs.io/en/latest/topics/datasources/nocloud.html

  Under the new 17.10 cloud images, this doesn't work: the network comes
  up, but name resolution doesn't work-- /etc/resolv.conf is a symlink
  to a nonexistent file at this point of the boot and systemd-resolved
  is not running.  When I manually hack /etc/resolv.conf in the cloud
  image to point to 4.2.2.1 it works fine.

  I don't know if nameservice not working is by design, but it seems
  like it should work.  The documentation states:

  "With ds=nocloud-net, the seedfrom value must start with http://,
  https:// or ftp://";

  And https is not going to work for a raw IP address.

  Related bugs:
   * bug 1734939: #include fails silently.

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