Uploaded proposed fix to Jammy-proposed queue here.
https://launchpadlibrarian.net/798605633/cloud-
init_25.1.2-0ubuntu0~22.04.1_25.1.2-0ubuntu0~22.04.2.diff.gz

This reverts just the specific commit which relocated systemd units from
/lib -> /usr/lib.

This resulting package created now appropriately enables all systemd
units as seen this console log:

Setting up cloud-init (25.1.2-0ubuntu0~22.04.2) ...
No diversion 'diversion of /etc/init/ureadahead.conf to 
/etc/init/ureadahead.conf.disabled by cloud-init', none removed.
Created symlink 
/etc/systemd/system/cloud-init.target.wants/cloud-config.service → 
/lib/systemd/system/cloud-config.service.
Created symlink /etc/systemd/system/cloud-init.target.wants/cloud-final.service 
→ /lib/systemd/system/cloud-final.service.
Created symlink 
/etc/systemd/system/cloud-config.target.wants/cloud-init-hotplugd.socket → 
/lib/systemd/system/cloud-init-hotplugd.socket.
Created symlink 
/etc/systemd/system/cloud-init.target.wants/cloud-init-local.service → 
/lib/systemd/system/cloud-init-local.service.
Created symlink /etc/systemd/system/cloud-init.target.wants/cloud-init.service 
→ /lib/systemd/system/cloud-init.service.
Processing triggers for man-db (2.10.2-1) ...
Processing triggers for rsyslog (8.2112.0-2ubuntu2.2) ...


** Changed in: cloud-init (Ubuntu Jammy)
       Status: In Progress => Fix Committed

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https://bugs.launchpad.net/bugs/2113797

Title:
  cloud-init 25.1.2 on Jammy not running on VM boot, systemd services
  disabled

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