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[Launchpad Bug Tracker <1619393@xxxxxxxxxxxxxxxxxx>]

This bug was fixed in the package cloud-init - 0.7.8-49-g9e904bb-
0ubuntu1~16.10.1

---------------
cloud-init (0.7.8-49-g9e904bb-0ubuntu1~16.10.1) yakkety; urgency=medium

  * debian/cloud-init.templates: enable DigitalOcean by default [Ben Howard]
  * debian/cloud-init.postinst: update /etc/fstab on Azure to fix
    future resize operations. (LP: #1611074)
  * New upstream snapshot.
    - systemd/cloud-init-local.service:
      + replace 'Wants' and 'After' on local-fs.target with more granular
        After=systemd-remount-fs.service and RequiresMountsFor=/var/lib
        and Before=sysinit.target.
        This is done run sufficiently early enough to update /etc/fstab.
        (LP: #1611074)
    - systemd/cloud-init.service:
      + add Before=sysinit.target and DefaultDependencies=no (LP: #1611074)
      + drop Requires=networking.service to work where networking.service is
        not needed.
      + add Conflicts=shutdown.target
      + drop unnecessary Wants=local-fs.target
    - net: support reading ipv6 dhcp config from initramfs [LaMont Jones]
      (LP: #1621615)
    - dmidecode: Allow dmidecode to be used on aarch64, and only attempt
      usage on x86, x86_64, and aarch64. [Robert Schweikert]
    - disk-config: udev settle after partitioning in gpt format.
      (LP: #1626243)
    - Add support for snap create-user on Ubuntu Core images. [Ryan Harper]
      (LP: #1619393)
    - Fix sshd restarts for rhel distros. [Jim Gorz]
    - Move user/group functions to new ug_util file [Joshua Harlow]
    - update Gentoo initscripts to run in the correct order [Matthew Thode]
    - MAAS: improve the debugging tool in datasource to consider
      config provided on kernel cmdline.
    - DataSources:
      + Ec2: protect against non-dictionary in block-device-mapping.
      + AliYun: Add new datasource for Ali-Cloud ECS, that is
        available but not enabled by default [kaihuan.pkh]
      + OpenNebula: replace parsing of 'ip' command with similar function
        available in cloudinit.net.  This fixed unit tests when running
        in environment with no networking.
    - doc changes:
      + Add documentation on stages of boot.
      + make the RST files consistently formated and other improvements.
      + fixed example to not overwrite /etc/hosts [Chris Glass]
      + fix spelling / typos in ca_certs and scripts_vendor.
      + improve HACKING.rst file
      + Add documentation for logging features. [Wesley Wiedenmeier]
    - code style and unit test changes:
      + pep8: fix style errors reported by pycodestyle 2.1.0
      + pyflakes: fix issue with pyflakes 1.3 found in ubuntu zesty-proposed.
      + Add coverage dependency to bddeb to fix package build.
      + Add coverage collection to tox unit tests. [Joshua Powers]
      + do not read system /etc/cloud/cloud.cfg.d (LP: #1635350)
      + tests: silence the Cheetah UserWarning about NameMapper C version.
      + Fix python2.6 things found running in centos 6.

 -- Scott Moser <smoser@xxxxxxxxxx>  Tue, 22 Nov 2016 17:04:36 -0500

** Changed in: cloud-init (Ubuntu Yakkety)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1619393

Title:
  cloud-init useradd/groupadd fails on ubuntu-core-16 with readonly
  /etc/passwd

Status in cloud-init:
  Fix Committed
Status in cloud-init package in Ubuntu:
  Fix Released
Status in cloud-init source package in Xenial:
  Fix Released
Status in cloud-init source package in Yakkety:
  Fix Released

Bug description:
  === Begin SRU Template ===
  [Impact] 
  When running under ubuntu-core 16 images, /etc/passwd is read-only.

  If my user-data includes any non-default username, creation fails due to
  the read-only nature of the image.

  This is addressed by useradd/groupadd including a command line flag, --extrausers
  which instructs the command to look for a different user/group database in
  /var/lib/extrausers , which is writable in the ubuntu-core 16 image.

  [Test Case]
  In a snappy image that has cloud-init enabled, launch image with the 
  following user-data:
   #cloud-config
   users:
     - name: bob
       snapuser: bob@xxxxxxxxx

  And also:
   #cloud-config
   snappy:
     email: bob@xxxxxxxxx

  where 'bob@xxxxxxxxx' is your launchpad registered email address.
  Assume you can log in.

  [Regression Potential] 
  The code is intended to be backwards compatible and inert unless 
  cloud-config provided turns it on.  It is also gated by a 'system_is_snappy'
  method that checks if the system is snappy (ubuntu core).

  Unit tests are provided, so regression should be somewhat reduced.

  Some code was moved around to implement this, and a new config module
  was added.

  
  [Other Info]
  The upstream change made here is at [1]

  [1] https://git.launchpad.net/cloud-
  init/commit?id=d8534561ba76db25b6fc0044eb1bfda63686e859

  === End SRU Template ===


  When running under ubuntu-core 16 images, /etc/passwd is read-only.

  If my user-data includes any non-default username, creation fails due to
  the read-only nature of the image.

  This is addressed by useradd/groupadd including a command line flag, --extrausers
  which instructs the command to look for a different user/group database in
  /var/lib/extrausers , which is writable in the ubuntu-core 16 image.

  The cc_user_groups module though is not aware of this.

  The Distro base-class could check if the system it's running on is snappy (see cc_snappy.py)
  and if so, append the --extrausers parameter to the useradd/groupadd commands.

  1) release is Xenial (ubuntu-core 16)
  2) cloud-init present is: 0.7.7~bzr1256-0ubuntu1~16.04.1
  3) useradd bob -m should create the user bob
  4) useradd fails due to readonly /etc/{passwd,group,shadow}

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