Public bug reported:

1) # lsb_release -rd 
Description:    Ubuntu 20.04.5 LTS
Release:        20.04

2) # apt-cache policy systemd 
systemd:
  Installed: 245.4-4ubuntu3.19
  Candidate: 245.4-4ubuntu3.19
  Version table:
 *** 245.4-4ubuntu3.19 500
        500 http://azure.archive.ubuntu.com/ubuntu focal-updates/main amd64 
Packages
        100 /var/lib/dpkg/status
     245.4-4ubuntu3.15 500
        500 http://azure.archive.ubuntu.com/ubuntu focal-security/main amd64 
Packages
     245.4-4ubuntu3 500
        500 http://azure.archive.ubuntu.com/ubuntu focal/main amd64 Packages

3) create a bond with one interface, active backup mode, apply config,
bond should be UP and configured with ip

network:
    ethernets:
        eth1:
            dhcp4: false
            dhcp6: false
            match:
                driver: hv_netvsc
                macaddress: 00:0d:3a:32:68:27
            set-name: eth1
    bonds:
        bond1:
            interfaces: [eth1]
            macaddress: 00:0d:3a:32:68:27
            parameters:
               mode: active-backup
            addresses: [10.1.2.132/25]
    version: 2

netplan generate
networkctl reload
networkctl reconfigure bond1
ip link show bond1


4) bond1 interface has IP configured but admin state is down.

ip link show bond1
6: bond1: <BROADCAST,MULTICAST,MASTER> mtu 1500 qdisc noop state DOWN mode 
DEFAULT group default qlen 1000
    link/ether 00:0d:3a:32:68:27 brd ff:ff:ff:ff:ff:ff

-- journal entries --
Dec 20 16:59:53 0-11686-3 systemd-networkd[723]: eth1: Link UP
Dec 20 16:59:53 0-11686-3 systemd-networkd[723]: eth1: Gained carrier
Dec 20 16:59:53 0-11686-3 systemd-networkd[723]: bond1: Could not bring up 
interface: Device or resource busy
Dec 20 16:59:58 0-11686-3 systemd-networkd[723]: bond1: Re-configuring with 
/run/systemd/network/10-netplan-bond1.network
Dec 20 16:59:58 0-11686-3 systemd-networkd[723]: bond1: IPv6 successfully 
enabled
Dec 20 16:59:58 0-11686-3 systemd-networkd[723]: bond1: Could not bring up 
interface: Device or resource busy

-- systemd-networkd in debug mode ---
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Re-configuring with 
/run/systemd/network/10-netplan-bond1.network
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Removing address 
10.1.2.132
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Setting 
'/proc/sys/net/ipv6/conf/bond1/disable_ipv6' to '0'
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: IPv6 successfully 
enabled
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Setting 
'/proc/sys/net/ipv6/conf/bond1/proxy_ndp' to '0'
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Setting 
'/proc/sys/net/ipv6/conf/bond1/use_tempaddr' to '0'
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Setting 
'/proc/sys/net/ipv6/conf/bond1/accept_ra' to '0'
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Setting address 
genmode for link
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Forgetting address: 
10.1.2.132/25 (valid forever)
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Sent message type=signal 
sender=n/a destination=n/a path=/org/freedesktop/network1/link/_36 
interface=org.freedesktop.D>
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Forgetting route: dst: 
10.1.2.132/32, src: n/a, gw: n/a, prefsrc: 10.1.2.132, scope: host, table: 
local, proto: >
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Setting address 
genmode done.
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: State changed: pending 
-> configuring
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Sent message type=signal 
sender=n/a destination=n/a path=/org/freedesktop/network1/link/_36 
interface=org.freedesktop.D>
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Bringing link up
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Setting addresses
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Could not bring up 
interface: Device or resource busy
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Remembering updated 
address: 10.1.2.132/25 (valid forever)
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Sent message type=signal 
sender=n/a destination=n/a path=/org/freedesktop/network1/link/_36 
interface=org.freedesktop.D>
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Remembering route: 
dst: 10.1.2.132/32, src: n/a, gw: n/a, prefsrc: 10.1.2.132, scope: host, table: 
local, proto:>
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Addresses set
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: State changed: 
configuring -> configured
Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Sent message type=signal 
sender=n/a destination=n/a path=/org/freedesktop/network1/link/_36 
interface=org.freedesktop.

ProblemType: Bug
DistroRelease: Ubuntu 20.04
Package: systemd 245.4-4ubuntu3.19
ProcVersionSignature: Ubuntu 5.15.0-1029.36~20.04.1-azure 5.15.64
Uname: Linux 5.15.0-1029-azure x86_64
ApportVersion: 2.20.11-0ubuntu27.25
Architecture: amd64
CasperMD5CheckResult: skip
Date: Tue Dec 20 17:00:43 2022
Lspci-vt:
 -+-[b14c:00]---02.0  Mellanox Technologies MT27500/MT27520 Family 
[ConnectX-3/ConnectX-3 Pro Virtual Function]
  +-[6523:00]---02.0  Mellanox Technologies MT27500/MT27520 Family 
[ConnectX-3/ConnectX-3 Pro Virtual Function]
  \-[0000:00]-
Lsusb: Error: command ['lsusb'] failed with exit code 1:
Lsusb-t:
 
Lsusb-v: Error: command ['lsusb', '-v'] failed with exit code 1:
MachineType: Microsoft Corporation Virtual Machine
ProcEnviron:
 LC_TIME=C.UTF-8
 TERM=screen.xterm-256color
 PATH=(custom, no user)
 LANG=C.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-5.15.0-1029-azure 
root=PARTUUID=c51187ab-04cc-499f-8947-0211dc8d74e7 ro console=tty1 
console=ttyS0 earlyprintk=ttyS0 panic=-1
SourcePackage: systemd
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 05/10/2022
dmi.bios.release: 4.1
dmi.bios.vendor: Microsoft Corporation
dmi.bios.version: Hyper-V UEFI Release v4.1
dmi.board.asset.tag: None
dmi.board.name: Virtual Machine
dmi.board.vendor: Microsoft Corporation
dmi.board.version: Hyper-V UEFI Release v4.1
dmi.chassis.asset.tag: 7783-7084-3265-9085-8269-3286-77
dmi.chassis.type: 3
dmi.chassis.vendor: Microsoft Corporation
dmi.chassis.version: Hyper-V UEFI Release v4.1
dmi.modalias: 
dmi:bvnMicrosoftCorporation:bvrHyper-VUEFIReleasev4.1:bd05/10/2022:br4.1:svnMicrosoftCorporation:pnVirtualMachine:pvrHyper-VUEFIReleasev4.1:rvnMicrosoftCorporation:rnVirtualMachine:rvrHyper-VUEFIReleasev4.1:cvnMicrosoftCorporation:ct3:cvrHyper-VUEFIReleasev4.1:skuNone:
dmi.product.family: Virtual Machine
dmi.product.name: Virtual Machine
dmi.product.sku: None
dmi.product.uuid: 5b44ee17-7323-41aa-9224-decddafe98b2
dmi.product.version: Hyper-V UEFI Release v4.1
dmi.sys.vendor: Microsoft Corporation

** Affects: systemd (Ubuntu)
     Importance: Undecided
         Status: New


** Tags: amd64 apport-bug focal uec-images

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https://bugs.launchpad.net/bugs/2000170

Title:
  bond interface down: device or resource busy

Status in systemd package in Ubuntu:
  New

Bug description:
  1) # lsb_release -rd 
  Description:    Ubuntu 20.04.5 LTS
  Release:        20.04

  2) # apt-cache policy systemd 
  systemd:
    Installed: 245.4-4ubuntu3.19
    Candidate: 245.4-4ubuntu3.19
    Version table:
   *** 245.4-4ubuntu3.19 500
          500 http://azure.archive.ubuntu.com/ubuntu focal-updates/main amd64 
Packages
          100 /var/lib/dpkg/status
       245.4-4ubuntu3.15 500
          500 http://azure.archive.ubuntu.com/ubuntu focal-security/main amd64 
Packages
       245.4-4ubuntu3 500
          500 http://azure.archive.ubuntu.com/ubuntu focal/main amd64 Packages

  3) create a bond with one interface, active backup mode, apply config,
  bond should be UP and configured with ip

  network:
      ethernets:
          eth1:
              dhcp4: false
              dhcp6: false
              match:
                  driver: hv_netvsc
                  macaddress: 00:0d:3a:32:68:27
              set-name: eth1
      bonds:
          bond1:
              interfaces: [eth1]
              macaddress: 00:0d:3a:32:68:27
              parameters:
                 mode: active-backup
              addresses: [10.1.2.132/25]
      version: 2

  netplan generate
  networkctl reload
  networkctl reconfigure bond1
  ip link show bond1


  4) bond1 interface has IP configured but admin state is down.

  ip link show bond1
  6: bond1: <BROADCAST,MULTICAST,MASTER> mtu 1500 qdisc noop state DOWN mode 
DEFAULT group default qlen 1000
      link/ether 00:0d:3a:32:68:27 brd ff:ff:ff:ff:ff:ff

  -- journal entries --
  Dec 20 16:59:53 0-11686-3 systemd-networkd[723]: eth1: Link UP
  Dec 20 16:59:53 0-11686-3 systemd-networkd[723]: eth1: Gained carrier
  Dec 20 16:59:53 0-11686-3 systemd-networkd[723]: bond1: Could not bring up 
interface: Device or resource busy
  Dec 20 16:59:58 0-11686-3 systemd-networkd[723]: bond1: Re-configuring with 
/run/systemd/network/10-netplan-bond1.network
  Dec 20 16:59:58 0-11686-3 systemd-networkd[723]: bond1: IPv6 successfully 
enabled
  Dec 20 16:59:58 0-11686-3 systemd-networkd[723]: bond1: Could not bring up 
interface: Device or resource busy

  -- systemd-networkd in debug mode ---
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Re-configuring with 
/run/systemd/network/10-netplan-bond1.network
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Removing address 
10.1.2.132
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Setting 
'/proc/sys/net/ipv6/conf/bond1/disable_ipv6' to '0'
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: IPv6 successfully 
enabled
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Setting 
'/proc/sys/net/ipv6/conf/bond1/proxy_ndp' to '0'
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Setting 
'/proc/sys/net/ipv6/conf/bond1/use_tempaddr' to '0'
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Setting 
'/proc/sys/net/ipv6/conf/bond1/accept_ra' to '0'
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Setting address 
genmode for link
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Forgetting address: 
10.1.2.132/25 (valid forever)
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Sent message type=signal 
sender=n/a destination=n/a path=/org/freedesktop/network1/link/_36 
interface=org.freedesktop.D>
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Forgetting route: 
dst: 10.1.2.132/32, src: n/a, gw: n/a, prefsrc: 10.1.2.132, scope: host, table: 
local, proto: >
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Setting address 
genmode done.
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: State changed: 
pending -> configuring
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Sent message type=signal 
sender=n/a destination=n/a path=/org/freedesktop/network1/link/_36 
interface=org.freedesktop.D>
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Bringing link up
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Setting addresses
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Could not bring up 
interface: Device or resource busy
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Remembering updated 
address: 10.1.2.132/25 (valid forever)
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Sent message type=signal 
sender=n/a destination=n/a path=/org/freedesktop/network1/link/_36 
interface=org.freedesktop.D>
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Remembering route: 
dst: 10.1.2.132/32, src: n/a, gw: n/a, prefsrc: 10.1.2.132, scope: host, table: 
local, proto:>
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: Addresses set
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: bond1: State changed: 
configuring -> configured
  Dec 20 17:05:52 0-11686-3 systemd-networkd[2685]: Sent message type=signal 
sender=n/a destination=n/a path=/org/freedesktop/network1/link/_36 
interface=org.freedesktop.

  ProblemType: Bug
  DistroRelease: Ubuntu 20.04
  Package: systemd 245.4-4ubuntu3.19
  ProcVersionSignature: Ubuntu 5.15.0-1029.36~20.04.1-azure 5.15.64
  Uname: Linux 5.15.0-1029-azure x86_64
  ApportVersion: 2.20.11-0ubuntu27.25
  Architecture: amd64
  CasperMD5CheckResult: skip
  Date: Tue Dec 20 17:00:43 2022
  Lspci-vt:
   -+-[b14c:00]---02.0  Mellanox Technologies MT27500/MT27520 Family 
[ConnectX-3/ConnectX-3 Pro Virtual Function]
    +-[6523:00]---02.0  Mellanox Technologies MT27500/MT27520 Family 
[ConnectX-3/ConnectX-3 Pro Virtual Function]
    \-[0000:00]-
  Lsusb: Error: command ['lsusb'] failed with exit code 1:
  Lsusb-t:
   
  Lsusb-v: Error: command ['lsusb', '-v'] failed with exit code 1:
  MachineType: Microsoft Corporation Virtual Machine
  ProcEnviron:
   LC_TIME=C.UTF-8
   TERM=screen.xterm-256color
   PATH=(custom, no user)
   LANG=C.UTF-8
   SHELL=/bin/bash
  ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-5.15.0-1029-azure 
root=PARTUUID=c51187ab-04cc-499f-8947-0211dc8d74e7 ro console=tty1 
console=ttyS0 earlyprintk=ttyS0 panic=-1
  SourcePackage: systemd
  UpgradeStatus: No upgrade log present (probably fresh install)
  dmi.bios.date: 05/10/2022
  dmi.bios.release: 4.1
  dmi.bios.vendor: Microsoft Corporation
  dmi.bios.version: Hyper-V UEFI Release v4.1
  dmi.board.asset.tag: None
  dmi.board.name: Virtual Machine
  dmi.board.vendor: Microsoft Corporation
  dmi.board.version: Hyper-V UEFI Release v4.1
  dmi.chassis.asset.tag: 7783-7084-3265-9085-8269-3286-77
  dmi.chassis.type: 3
  dmi.chassis.vendor: Microsoft Corporation
  dmi.chassis.version: Hyper-V UEFI Release v4.1
  dmi.modalias: 
dmi:bvnMicrosoftCorporation:bvrHyper-VUEFIReleasev4.1:bd05/10/2022:br4.1:svnMicrosoftCorporation:pnVirtualMachine:pvrHyper-VUEFIReleasev4.1:rvnMicrosoftCorporation:rnVirtualMachine:rvrHyper-VUEFIReleasev4.1:cvnMicrosoftCorporation:ct3:cvrHyper-VUEFIReleasev4.1:skuNone:
  dmi.product.family: Virtual Machine
  dmi.product.name: Virtual Machine
  dmi.product.sku: None
  dmi.product.uuid: 5b44ee17-7323-41aa-9224-decddafe98b2
  dmi.product.version: Hyper-V UEFI Release v4.1
  dmi.sys.vendor: Microsoft Corporation

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