I seem to have encountered the same or similar issue in ubuntu
focal/20.04 when using the image ubuntu-minimal-2004-focal-v20210928 on
GCP. Creating a new custom GCP image using this as the base image and
running:

apt-get update
apt-get upgrade -y

created a custom image that exhibited the same issues with GCP OS login.
Rebooting the VM also resolved the ssh connection issues.  Placing a
hold ('apt-mark hold cloud-init') on the cloud-init package before
running the upgrade also seemed to resolve the issue.

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https://bugs.launchpad.net/bugs/1938299

Title:
  Unable to SSH Into Instance when deploying Impish 21.10

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