I can confirm that bug https://bugs.launchpad.net/ubuntu/+source/cloud- init/+bug/1811446 has been fixed in Cloud-Init version 18.5-21-g8ee294d5-0ubuntu1~16.04.1 on Bionic and Xenial:
Bionic: root@cloud-init-bug:~# lsb_release -a No LSB modules are available. Distributor ID: Ubuntu Description: Ubuntu 18.04.1 LTS Release: 18.04 Codename: bionic root@cloud-init-bug:~# cloud-init --version /usr/bin/cloud-init 18.5-21-g8ee294d5-0ubuntu1~18.04.1 root@cloud-init-bug:~# grep 'hashed' /var/log/cloud-init.log 2019-02-13 16:58:33,387 - cc_set_passwords.py[DEBUG]: Setting hashed password for ['root']: root@cloud-init-bug:~# cat /etc/shadow | grep root root:$2y$10$dNEtJjlezvPjRbbJMZ5c1.L9dQ6TvyF8RnEbh42E9MkQwrLlXgsmG:17940:0:99999:7::: Xenial: root@cloud-init-bug:~# lsb_release -a No LSB modules are available. Distributor ID: Ubuntu Description: Ubuntu 16.04.5 LTS Release: 16.04 Codename: xenial root@cloud-init-bug:~# cloud-init --version /usr/bin/cloud-init 18.5-21-g8ee294d5-0ubuntu1~16.04.1 root@cloud-init-bug:~# grep 'hashed' /var/log/cloud-init.log 2019-02-13 17:03:28,248 - cc_set_passwords.py[DEBUG]: Setting hashed password for ['root']: root@cloud-init-bug:~# cat /etc/shadow | grep root root:$2y$10$E9SZmg3AYO87cBvecAmDOuMB..QF8H6zSxvKTT384OrdaLqae8GHu:17940:0:99999:7::: -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/1813346 Title: sru cloud-init (18.4.0 update to 18.5-21-g8ee294d5) Xenial, Bionic, Cosmic To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/cloud-init/+bug/1813346/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs