This bug was fixed in the package xe-guest-utilities -
6.2.0-1120+dsf1-0ubuntu4

---------------
xe-guest-utilities (6.2.0-1120+dsf1-0ubuntu4) zesty; urgency=medium

  * debian/xe-guest-utilities.xe-daemon.service: declare
    DefaultDependencies=no to prevent dependency cycles. The unit cannot
    be simultaniously before and after sysinit target. By default all
    units are after sysinit target, yet cloud-init-local is before it. LP:
    #1669755

 -- Dimitri John Ledkov <x...@ubuntu.com>  Fri, 03 Mar 2017 12:33:01
+0000

** Changed in: xe-guest-utilities (Ubuntu Zesty)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1669755

Title:
  Circular boot dependency cycle with cloud-init et.al.

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