Thanks for your help Steve and Scott. I ran a test with 100 VM's (custom image 
with this version of cloud-init included) and all 100 successfully came up with 
/mnt formatted as ext4. So I think this bug is sorted out.
However, I'm still able to repro bug 1611074 when I resize a VM with this 
version of cloud-init installed. The changelog indicates that the bugfix was 
backported, so it's a bit surprising.

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https://bugs.launchpad.net/bugs/1626243

Title:
  Cloud-init fails to write ext4 filesystem to Azure Ephemeral Drive

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