After retest on RHEL8.3 compose with cloud-init-19.4-1.el8.1.noarch, after clone guest, the error log exist in cloud-init.log.
So clone this bug to RHEL8.3.

Setting ITR=8.3.0 and devel_ack+.

Created attachment 1711721 [details]
cloud-init.log

Hi Eduardo,
Retest build cloud-init-19.4-7.el8.eterrell202008191416.noarch on RHEL8.3 with kernel 4.18.0-232.el8.x86_64.
This build still not work as expected, the timezone, IP and DNS not configured right after clone VM.

There is still error and failed log in cloud-init.log.

2020-08-20 01:58:53,984 - util.py[DEBUG]: Running command ['vmware-toolbox-cmd', 'config', 'get', 'deployPkg', 'enable-custom-scripts'] with allowed return codes [0] (shell=False, capture=True)
2020-08-20 01:58:53,998 - DataSourceOVF.py[DEBUG]: Error parsing the customization Config File: name 'ProcessExecutionError' is not defined
2020-08-20 01:58:53,998 - guestcust_util.py[DEBUG]: Sending RPC command: deployPkg.update.state 4 100 /var/log/cloud-init.log
2020-08-20 01:58:53,998 - util.py[DEBUG]: Running command ['vmware-rpctool', 'deployPkg.update.state 4 100 /var/log/cloud-init.log'] with allowed return codes [0] (shell=False, capture=True)
2020-08-20 01:58:54,001 - util.py[DEBUG]: Recursively deleting /var/run/vmware-imc
2020-08-20 01:58:54,001 - handlers.py[DEBUG]: finish: init-local/search-OVF: FAIL: no local data found from DataSourceOVF
2020-08-20 01:58:54,001 - util.py[WARNING]: Getting data from <class 'cloudinit.sources.DataSourceOVF.DataSourceOVF'> failed
2020-08-20 01:58:54,001 - util.py[DEBUG]: Getting data from <class 'cloudinit.sources.DataSourceOVF.DataSourceOVF'> failed
Traceback (most recent call last):
  File "/usr/lib/python3.6/site-packages/cloudinit/sources/helpers/vmware/imc/guestcust_util.py", line 139, in get_tools_config
    (outText, _) = util.subp(cmd)
  File "/usr/lib/python3.6/site-packages/cloudinit/util.py", line 2084, in subp
    cmd=args)
cloudinit.util.ProcessExecutionError: Unexpected error while running command.
Command: ['vmware-toolbox-cmd', 'config', 'get', 'deployPkg', 'enable-custom-scripts']
Exit code: 69
Reason: -
Stdout: [deployPkg] enable-custom-scripts UNSET
Stderr:

During handling of the above exception, another exception occurred:

Traceback (most recent call last):
  File "/usr/lib/python3.6/site-packages/cloudinit/sources/__init__.py", line 760, in find_source
    if s.update_metadata([EventType.BOOT_NEW_INSTANCE]):
  File "/usr/lib/python3.6/site-packages/cloudinit/sources/__init__.py", line 649, in update_metadata
    result = self.get_data()
  File "/usr/lib/python3.6/site-packages/cloudinit/sources/__init__.py", line 273, in get_data
    return_value = self._get_data()
  File "/usr/lib/python3.6/site-packages/cloudinit/sources/DataSourceOVF.py", line 178, in _get_data
    vmwareImcConfigFilePath)
  File "/usr/lib/python3.6/site-packages/cloudinit/sources/DataSourceOVF.py", line 663, in _raise_error_status
    raise error
  File "/usr/lib/python3.6/site-packages/cloudinit/sources/DataSourceOVF.py", line 158, in _get_data
    "false")
  File "/usr/lib/python3.6/site-packages/cloudinit/sources/helpers/vmware/imc/guestcust_util.py", line 140, in get_tools_config
    except ProcessExecutionError as e:
NameError: name 'ProcessExecutionError' is not defined

I attach the detail cloud-init.log in attachment, if need any other log, please contact me freely!

BRs,
Lili Du

Created attachment 1711958 [details]
cloudinitlog

Hi, 

The issue has already been fixed, it will be effected AFTER release version of cloud-init 20.2.
Commit c6d09af67626c2f2241c64c10c9e27e8752ba87b was merged into canonical:master

There is a workaround for the versions that does not fix the issue, run cmd like 
"vmware-toolbox-cmd config set deployPkg enable-custom-scripts false" to create /etc/vmware-tools/tools.conf



Best Regards,
Cheng Cheng

Verified this bug on RHEL8.3 compose with cloud-init-19.4-10.el8.
After cloned the guest with cloud-init, check the cloud-init.log file, no error, fail log.
Also check the timezone, IP, all set as specification.
so change 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 (Moderate: cloud-init security, bug fix, and enhancement update), 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/RHSA-2020:4650