Any updated tutorial on how to create new cloud images?
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@encryptblockr yup, welcome to cloud-init hell. Your issue is definitely ubuntu related though, if I had to guess, the installer wants/requires a swap partition. Just create a 1 or 2gb swap partition as well, but put it first in the partition table, so the root partition after it has room to grow. You'll also run into some network issues probably when trying to use your new template, as ubuntu has moved to new netplan crap to manage networking in the OS, and cloud-init has a ton of bugs with it
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Also note the text at the top of your screenshot: to continue you need to select a boot device. There might be a way in that menu (or partition creation submenu) to mark that created partition as bootable, or maybe you just need to highlight/select the partition under "used devices" before hitting "done"