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Description of problem: Installing packages seems like an obvious thing to want to do when first booting a cloud-init enabled image, but our cloud.cfg does not enable this module, so passing in user-data that looks like this... #cloud-config packages: - git ...will do nothing.
Upstream conversation + workaround info for this bug: https://lists.launchpad.net/cloud-init/msg00023.html There is a 2nd bug which affects this module (needing to manually set /var/run/reboot-required), but it's not a show stopper to enabling the module.
Latest cloud-init packages include the package-update-upgrade-install module.