Bug 1532213

In the ansible based flow we are going to execute engine-setup on the engine VM via ansible (over an ssh connection) and not via cloud-init.
The cloud-init initial file for the local bootstrap VM should also address different configurations so its cloud-init image will be not be backward compatible between the two flows.
We should definitively remove the question on the ansible based flow since it's not effective and we should implement https://bugzilla.redhat.com/show_bug.cgi?id=1507427 to make this not required.

Not reproducible on otopi based flow.
It's specific to the ansible flow and it will be addressed there by 1507427

 [root@c74he20180108h1 ~]# hosted-engine --deploy
 [ INFO  ] Stage: Initializing
 [ INFO  ] Generating a temporary VNC password.
 [ INFO  ] Stage: Environment setup
           During customization use CTRL-D to abort.
           Continuing will configure this host for serving as hypervisor and create a VM where you have to install the engine afterwards.
           Are you sure you want to continue? (Yes, No)[Yes]: 
           It has been detected that this program is executed through an SSH connection without using screen.
           Continuing with the installation may lead to broken installation if the network connection fails.
           It is highly recommended to abort the installation and run it inside a screen session using command "screen".
           Do you want to continue anyway? (Yes, No)[No]: yes
 [ INFO  ] Hardware supports virtualization
           Configuration files: []
           Log file: /var/log/ovirt-hosted-engine-setup/ovirt-hosted-engine-setup-20180110143811-mkdu45.log
           Version: otopi-1.7.5 (otopi-1.7.5-1.el7.centos)
 [ INFO  ] Detecting available oVirt engine appliances
 [ INFO  ] Stage: Environment packages setup
 [ INFO  ] Stage: Programs detection
 [ INFO  ] Stage: Environment setup
 [ INFO  ] Generating libvirt-spice certificates
 [ INFO  ] Stage: Environment customization
          
           --== STORAGE CONFIGURATION ==--
          
           Please specify the storage you would like to use (glusterfs, iscsi, fc, nfs3, nfs4)[nfs3]: nfs4
           Please specify the full shared storage connection path to use (example: host:/path): 192.168.1.115:/storage/nfs/he1
          
           --== HOST NETWORK CONFIGURATION ==--
          
           Please indicate a pingable gateway IP address [192.168.1.1]: 
           iptables was detected on your computer, do you wish setup to configure it? (Yes, No)[Yes]: 
           Please indicate a nic to set ovirtmgmt bridge on: (eth0) [eth0]: 
          
           --== VM CONFIGURATION ==--
          
           The following appliance have been found on your system:
           	[1] - The oVirt Engine Appliance image (OVA) - 4.2-20171219.1.el7.centos
           	[2] - Directly select an OVA file
           Please select an appliance (1, 2) [1]: 
 [ INFO  ] Verifying its sha1sum
 [ INFO  ] Checking OVF archive content (could take a few minutes depending on archive size)
 [ INFO  ] Checking OVF XML content (could take a few minutes depending on archive size)
           Please specify the console type you would like to use to connect to the VM (vnc, spice) [vnc]: 
 [ INFO  ] Detecting host timezone.
           Would you like to use cloud-init to customize the appliance on the first boot (Yes, No)[Yes]? 
           Would you like to generate on-fly a cloud-init ISO image (of no-cloud type)
           or do you have an existing one (Generate, Existing)[Generate]? existing
 [WARNING] The oVirt engine appliance is not configured with a default password, please consider configuring it via cloud-init
           Please specify the size of the VM disk in GB: [50]: 
           Please specify the memory size of the VM in MB (Defaults to maximum available): [5075]: 4096
           The following CPU types are supported by this host:
           	 - model_Haswell-noTSX: Intel Haswell-noTSX Family
           	 - model_SandyBridge: Intel SandyBridge Family
           	 - model_Westmere: Intel Westmere Family
           	 - model_Nehalem: Intel Nehalem Family
           	 - model_Penryn: Intel Penryn Family
           	 - model_Conroe: Intel Conroe Family
           Please specify the CPU type to be used by the VM [model_Haswell-noTSX]: 
           You can configure an optional ISO image for cloud-init configuration.
           Please specify path to configuration media you would like to use [None]:

I reopen it since even if we will need to fix:
https://bugzilla.redhat.com/show_bug.cgi?id=1507427

we need to remove the otopi question:
Would you like to generate on-fly a cloud-init ISO image (of no-cloud type) or do you have an existing one (Generate, Existing)[Generate]? 

So I'll change the bug description as well

Works for me just fine on these components:
ovirt-hosted-engine-setup-2.2.7-0.0.master.20180119084226.git3799ea2.el7.centos.noarch
ovirt-hosted-engine-ha-2.2.5-0.0.master.20180117160214.20180117160210.gitd5b58a8.el7.centos.noarch
ovirt-engine-appliance-4.2-20180121.1.el7.centos.noarch

Moving to verified.

This bugzilla is included in oVirt 4.2.1 release, published on Feb 12th 2018.

Since the problem described in this bug report should be
resolved in oVirt 4.2.1 release, it has been closed with a resolution of CURRENT RELEASE.

If the solution does not work for you, please open a new bug report.