This bug was fixed in the package cloud-init - 0.7.7~bzr1245-0ubuntu1
---------------
cloud-init (0.7.7~bzr1245-0ubuntu1) yakkety; urgency=medium
* New upstream snapshot.
- user_data: fix error when user-data is not utf-8 decodable (LP: #1532072)
- write_files: if no permissions are provided, use the default without
logging a warning.
-- Scott Moser <smo...@ubuntu.com> Wed, 22 Jun 2016 15:11:33 -0400
** Changed in: cloud-init (Ubuntu Yakkety)
Status: Confirmed => Fix Released
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https://bugs.launchpad.net/bugs/1532072
Title:
cloud-init fails with UnicodeDecodeError
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