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Windows 2016 server is not booting

After installing cloudbase-init 0.9.11-dev1 on Windows 2016 Server and creating a generalized OpenStack image from it, the instance itself starts well, but Windows boot up process cannot proceed till the login screen. Windows showing endless rotating circle and cmd popup windows with logdir, logfile, verbose deprecation warnings (same screen was seen on Windows 2012R2, but has no influence on booting ability).

Tried both on KVM (with VirtIO injection) and Hyper-V platforms.