All Linux VMs on Azure won't boot, stuck on cloud-init (metadata service crawler) initialization

Solution 1:

You appear to be hitting a bug that was introduced in cloud-init 21.3 that only affects Azure instances launched a few years ago that have been upgraded since.

https://bugs.launchpad.net/bugs/1946644

This bug is fixed in cloud-init 21.4, so upgrading should fix your issue.