I have suddenly come across a issue that I am guessing has appeared with a recent change in Ubuntu that is now preventing growpart in the cloud-init to resize the disk when spun up from template.

I do recall a post on here that i have saved within my notes as a reminder that something will go wrong at some point. They has provided detailed instructions to get cloud-init working with Ubuntu and finished the post with the following:

"This post will no longer lead to a working cloud-init deployment within 3-6 months based on my previous experience"
"You have to examine the default file you get line by line and work towards the values above until the template works properly."
(@FOHDEESHA, Vates - Pro Support Team)

I completed the following steps before converting to temaplate:

Install packages: cloud-init cloud-utils cloud-initramfs-growroot
Remove all or comment out from /etc/resolv.conf
Remove all but localhost from /etc/hosts

Remove any datasource_list or datasource blocks, and replace them with these values in /etc/cloud/cloud.cfg

#XOA Cloud-init Data Source
datasource_list: [ NoCloud, ConfigDrive ]
datasource:
    ConfigDrive:
        dsmode: local
    NoCloud:
        fs_label: cidata

Add network handling in /etc/cloud/cloud.cfg

#XOA Network Handling
manage_resolv_conf: true
manage_etc_hosts: true
preserve_hostname: false

Remove any of the old configs left by the Ubuntu install.

sudo rm -rf /etc/cloud/cloud.cfg.d/99-installer.cfg /etc/cloud/cloud.cfg.d/90_dpkg.cfg /etc/cloud/cloud.cfg.d/subiquity-disable-cloudinit-networking.cfg

Clean up logs, history and remove any ssh keys.

sudo rm -rf /etc/ssh/ssh_host_*
sudo cloud-init clean --logs
sudo cat /dev/null > ~/.bash_history && history -c

Convert to template.

Cloud Config file is very basic, to try reduce the amount that could be going wrong to locate the isssue.

#cloud-config
hostname: {name}
fqdn: {name}.example.com 

growpart:
  mode: auto
  devices: ['/']
  ignore_growroot_disabled: false

packages:
  - nano
  - wget
  - unzip
  - tmux
  - cron

package_update: true
package_upgrade: true

final_message: "Setup complete in $UPTIME seconds, please allow two minuets for DNS records to update!"

My template is build on a 16GB disk, as the point of VM creation I set the disk to 128GB.
running lsblk shows the 128GB is there.

NAME                      MAJ:MIN RM  SIZE RO TYPE MOUNTPOINTS
sr0                        11:0    1 1024M  0 rom
xvda                      202:0    0  128G  0 disk
├─xvda1                   202:1    0    1M  0 part
├─xvda2                   202:2    0  1.8G  0 part /boot
└─xvda3                   202:3    0 14.2G  0 part
  └─ubuntu--vg-ubuntu--lv 253:0    0 14.2G  0 lvm  /

as you can see my / mount is still at the 14GB. Running vgdisplay and df -h both do not show the 128GB disk and has also preventing me from resizing.

 --- Volume group ---
  VG Name               ubuntu-vg
  System ID
  Format                lvm2
  Metadata Areas        1
  Metadata Sequence No  4
  VG Access             read/write
  VG Status             resizable
  MAX LV                0
  Cur LV                1
  Open LV               1
  Max PV                0
  Cur PV                1
  Act PV                1
  VG Size               <14.25 GiB
  PE Size               4.00 MiB
  Total PE              3647
  Alloc PE / Size       3647 / <14.25 GiB
  Free  PE / Size       0 / 0
  VG UUID               NZTIlD-5YHf-eUf1-xCzL-RMX7-BI72-HG200D

Filesystem                         Size  Used Avail Use% Mounted on
tmpfs                              389M  744K  388M   1% /run
/dev/mapper/ubuntu--vg-ubuntu--lv   14G  4.5G  8.9G  34% /
tmpfs                              1.9G     0  1.9G   0% /dev/shm
tmpfs                              5.0M     0  5.0M   0% /run/lock
tmpfs                              1.9G     0  1.9G   0% /run/qemu
/dev/xvda2                         1.7G  252M  1.4G  16% /boot
tmpfs                              389M  4.0K  389M   1% /run/user/1000

Has anyone come across this issue, i feel this is something new that has caused this with a update in Ubuntu as this has been working.