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[Launchpad Bug Tracker <1625766@xxxxxxxxxxxxxxxxxx>]

This bug was fixed in the package cloud-init - 0.7.9-0ubuntu1~16.04.2

---------------
cloud-init (0.7.9-0ubuntu1~16.04.2) xenial-proposed; urgency=medium

  * debian/update-grub-legacy-ec2: fix shell syntax error. (LP:
#1662221)

cloud-init (0.7.9-0ubuntu1~16.04.1) xenial-proposed; urgency=medium

  * debian/copyright: update License field to include Apache.
  * debian/update-grub-legacy-ec2: fix to include kernels whose config
    has CONFIG_XEN=y (LP: #1379080).
  * debian/patches/azure-use-walinux-agent.patch: continue relying on
    walinux agent in stable release.
  * New upstream release.
    - doc: adjust headers in tests documentation for consistency.
    - pep8: fix issue found in zesty build with pycodestyle.
    - integration test: initial commit of integration test framework
      [Wesley Wiedenmeier]
    - LICENSE: Allow dual licensing GPL-3 or Apache 2.0 [Jon Grimm]
    - Fix config order of precedence, putting kernel command line over system.
      [Wesley Wiedenmeier] (LP: #1582323)
    - pep8: whitespace fix [Scott Moser]
    - Update the list of valid ssh keys. [Michael Felt]
    - network: add ENI unit test for statically rendered routes.
    - set_hostname: avoid erroneously appending domain to fqdn
      [Lars Kellogg-Stedman] (LP: #1647910)
    - doc: change 'nobootwait' to 'nofail' in docs [Anhad Jai Singh]
    - Replace an expired bit.ly link in code comment. [Joshua Harlow]
    - user-groups: fix bug when groups was provided as string and had spaces
      [Scott Moser] (LP: #1354694)
    - when adding a user, strip whitespace from group list
      [Lars Kellogg-Stedman] (LP: #1354694)
    - fix decoding of utf-8 chars in yaml test
    - Replace usage of sys_netdev_info with read_sys_net
      [Joshua Harlow] (LP: #1625766)
    - fix problems found in python2.6 test. [Joshua Harlow]
    - Just use file logging by default [Joshua Harlow] (LP: #1643990)
    - Improve formatting for ProcessExecutionError [Wesley Wiedenmeier]
    - flake8: fix trailing white space
    - Doc: various documentation fixes [Sean Bright]
    - cloudinit/config/cc_rh_subscription.py: Remove repos before adding
      [Brent Baude]
    - packages/redhat: fix rpm spec file.
    - main: set TZ in environment if not already set. [Ryan Harper]

 -- Scott Moser <smoser@xxxxxxxxxx>  Mon, 06 Feb 2017 16:18:28 -0500

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

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https://bugs.launchpad.net/bugs/1625766

Title:
  Fallback networking doesn't handle IOError when reading
  sys/net/<iface>/carrier

Status in cloud-init:
  Fix Released
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:
  Sometimes reading from /sys/class/net/<iface>/carrier returns an error
  and is unhangled causing fallback networking to not bring anything up.

  
  [Original Description]

  I am running Arch on a KVM vps provider. I installed using this
  template: Arch Linux 2016.03 64-bit (template). Everything was working
  fine until I decided to upgrade. I did pacman -Syu and everything
  upgraded without error until it restarted.

  I had to manually install certain python packages. But, I kept getting
  more errors so I joined IRC.

  Here's the log: https://irclogs.ubuntu.com/2016/09/20/%23cloud-
  init.html

  Was told to post it Here to sum up everything

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