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This bug has been copied from bug #1772505 and has been proposed to be backported to 7.7 z-stream (EUS).
Tested with cloud-init-18.5-3.el7_7.2.x86_64 in rhel-7.7, the issue is gone. Change the status to VERIFIED.
Since the problem described in this bug report should be resolved in a recent advisory, it has been closed with a resolution of ERRATA. For information on the advisory, and where to find the updated files, follow the link below. If the solution does not work for you, open a new bug report. https://access.redhat.com/errata/RHBA-2020:2534