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the user cloudbase-init is created by the installer and not related to the config files and you can choose to not create during the installation.

Related to the config files not being applied, there are two cloudbase-init runs at the first boot, one during sysprep specialize(cloudbase-init-unattend.conf) and one after oobe (cloudbase-init.conf). Afterwards, at any subsequent reboot, there is one run per boot.

Can you please provide the config files/unattend and maybe some cloudbase-init logs, if possible?

Thank you.