Yes, let me understand your case more clearly, I thought cloud-init is
only needed at step1.

Attach an iso to set up user, ssk-key, is this a one time job or you
want it happen for all cloned new VMs?

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https://bugs.launchpad.net/bugs/1793715

Title:
  VMWare Guest OS Customization will fail for Ubuntu 18.04 Server
  LiveCD

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