Unable to login to AWS instance after installing cloud-init

Question

I have a custom ami crated after importing an .ova file following the process outlined here .

After spinning up an instance from that particular ami , I am able to login to the instance using ubuntu@private-ip .

I then proceed to installing cloud-init :

$ sudo apt update
$ sudo apt install -y cloud-init

(my .ova did not have the cloud-init when importing it)

I then reboot the instance (after cloud-init 's installation) and I keep getting the following:

ubuntu@private-ip's password: 
Permission denied, please try again.
ubuntu@private-ip's password: 

Answer 1

I replicated the process in a VMware player and it seems cloud-init is messing with the VM`s ssh configuration: