I'm experiencing this on Xenial.

After the first reboot, cloud-init crashes with:

[    7.987364] cloud-init[479]: Cloud-init v. 0.7.7 running 'init-local' at 
Wed, 22 Jun 2016 11:11:07 +0000. Up 7.89 seconds.
[    7.994869] cloud-init[479]: 2016-06-22 11:11:07,161 - util.py[WARNING]: 
failed of stage init-local
[    8.008421] cloud-init[479]: failed run of stage init-local
[    8.016678] cloud-init[479]: 
------------------------------------------------------------
[    8.029215] cloud-init[479]: Traceback (most recent call last):
[    8.037082] cloud-init[479]:   File "/usr/bin/cloud-init", line 520, in 
status_wrapper
[    8.049074] cloud-init[479]:     ret = functor(name, args)
[    8.060376] cloud-init[479]:   File "/usr/bin/cloud-init", line 250, in 
main_init
[    8.072385] cloud-init[479]:     init.fetch(existing=existing)
[    8.081004] cloud-init[479]:   File 
"/usr/lib/python3/dist-packages/cloudinit/stages.py", line 322, in 
fetch[FAILED] Failed to start Initial cloud-init job (pre-networking).
See 'systemctl status cloud-init-local.service' for details.
[    8.099419] cloud-init[479]:     return 
self._get_data_source(existing=existing)

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https://bugs.launchpad.net/bugs/1575055

Title:
  check_instance_id() error on reboots when using config-drive

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