So what happens if you get a 503, we now ignore it, but at the same time
didn't get the configuration data we need for the instance, and boot
nevertheless. We will be booting an unconfigured instance, right? Or
will cloud-init remain in the background retrying, and eventually
(hopefully) succeed, and then configure the instance?

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https://bugs.launchpad.net/bugs/2094858

Title:
  Cloud-init fails on AWS if IMDSv2 returns a 503 error.

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