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[Launchpad Bug Tracker <1674685@xxxxxxxxxxxxxxxxxx>]

This bug was fixed in the package cloud-init - 0.7.9-90-g61eb03fe-
0ubuntu1~16.10.1

---------------
cloud-init (0.7.9-90-g61eb03fe-0ubuntu1~16.10.1) yakkety; urgency=medium

  * debian/cloud-init.templates: add Bigstep to list of sources. (LP: #1676460)
  * New upstream snapshot.
    - OpenStack: add 'dvs' to the list of physical link types. (LP: #1674946)
    - Fix bug that resulted in an attempt to rename bonds or vlans.
      (LP: #1669860)
    - tests: update OpenNebula and Digital Ocean to not rely on host
      interfaces.
    - net: in netplan renderer delete known image-builtin content.
      (LP: #1675576)
    - doc: correct grammar in capabilities.rst [David Tagatac]
    - ds-identify: fix detecting of maas datasource. (LP: #1677710)
    - netplan: remove debugging prints, add debug logging [Ryan Harper]
    - ds-identify: do not write None twice to datasource_list.
    - support resizing partition and rootfs on system booted without
      initramfs.  [Steve Langasek] (LP: #1677376)
    - apt_configure: run only when needed. (LP: #1675185)
    - OpenStack: identify OpenStack by product 'OpenStack Compute'.
      (LP: #1675349)
    - GCE: Search GCE in ds-identify, consider serial number in check.
      (LP: #1674861)
    - Add support for setting hashed passwords [Tore S. Lonoy] (LP: #1570325)
    - Fix filesystem creation when using "partition: auto"
      [Jonathan Ballet] (LP: #1634678)
    - ConfigDrive: support reading config drive data from /config-drive.
      (LP: #1673411)
    - ds-identify: fix detection of Bigstep datasource. (LP: #1674766)
    - test: add running of pylint [Joshua Powers]
    - ds-identify: fix bug where filename expansion was left on.
    - advertise network config v2 support (NETWORK_CONFIG_V2) in features.
    - Bigstep: fix bug when executing in python3. [root]
    - Fix unit test when running in a system deployed with cloud-init.
    - Bounce network interface for Azure when using the built-in path.
      [Brent Baude] (LP: #1674685)
    - cloudinit.net: add network config v2 parsing and rendering [Ryan Harper]
    - net: Fix incorrect call to isfile [Joshua Powers] (LP: #1674317)
    - net: add renderers for automatically selecting the renderer.
    - doc: fix config drive doc with regard to unpartitioned disks.
      (LP: #1673818)
    - test: Adding integratiron test for password as list [Joshua Powers]
    - render_network_state: switch arguments around, do not require target
    - support 'loopback' as a device type.
    - Integration Testing: improve testcase subclassing [Wesley Wiedenmeier]
    - gitignore: adding doc/rtd_html [Joshua Powers]
    - doc: add instructions for running integration tests via tox.
      [Joshua Powers]
    - test: avoid differences in 'date' output due to daylight savings.
    - Fix chef config module in omnibus install. [Jeremy Melvin] (LP: #1583837)
    - Add feature flags to cloudinit.version. [Wesley Wiedenmeier]
    - tox: add a citest environment
    - Support chpasswd/list being a list in addition to a string.
      [Sergio Lystopad] (LP: #1665694)
    - doc: Fix configuration example for cc_set_passwords module.
      [Sergio Lystopad] (LP: #1665773)
    - net: support both ipv4 and ipv6 gateways in sysconfig.
      [Lars Kellogg-Stedman] (LP: #1669504)
    - net: do not raise exception for > 3 nameservers
      [Lars Kellogg-Stedman] (LP: #1670052)

 -- Scott Moser <smoser@xxxxxxxxxx>  Mon, 03 Apr 2017 12:03:30 -0400

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

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https://bugs.launchpad.net/bugs/1674685

Title:
  hostname ddns update is not done on azure with built-in agent path.

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]
  The network device on Azure is configured via dhcp.  DNS records are
  updated for the host with the dhcp's request (dyndns).

  Cloud-init has two operation modes on Azure.
  a.) builtin: cloud-init does negotiation with the "fabric" (cloud platform)
      directly.
  b.) interaction with walinux-agent: cloud-init invokes walinux-agent
      and expects it to do negotiation.

  The system's hostname is provided to cloud-init via info on a cdrom.
  cloud-init reads that hostname and then updates the system's hostname.
  When configured to use walinux-agent, cloud-init would then bounce
  the network device to publish this hostname change.

  The bug here was that this did not happen in the builtin path, and
  as a result systems would not have dns updated for their hostname.

  This is not a problem for xenial or yakkety as they use the
  walinuxagent path.

  [Test Case]
  To verify no regression
  start an instance on azure
  enable proposed, update, upgrade
  rm -Rf /var/lib/cloud /var/log/cloud-init*
  reboot

  [Regression Potential]
  Regression risk is very low since this code path is not used in 16.04 or
  16.10.  The changed code path is only used in 17.04+.  Thus the test case
  listed above is simple instance boot.

  [Other Info]
  Upstream commit:
   https://git.launchpad.net/cloud-init/commit/?id=86715c88aab8561

  === End SRU Template ===

  Brent Baude and Paul Meyer realized that on Azure, that when the
  'agent_command' is set to __builtin__ (the current default in trunk)
  that cloud-init does not bounce the network device in order to do a
  ddns update of the systems' hostname.

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