Comment 2 for bug 1905493

The systemd-logind problem is due to dbus defaulting to apparmor mode 'enabled', but apparmor can't do much of anything inside a container so it fails to start, and dbus can't contact it.

In the 2nd level container, create a file like '/etc/dbus-1/system.d/no-apparmor.conf' with content:

<?xml version="1.0" encoding="UTF-8"?>

<!DOCTYPE busconfig PUBLIC
 "-//freedesktop//DTD D-BUS Bus Configuration 1.0//EN"
 "http://www.freedesktop.org/standards/dbus/1.0/busconfig.dtd">
<busconfig>
  <apparmor mode="disabled"/>
</busconfig>

Then restart the 2nd level container and recheck systemd-logind which should now work

Of course, fixing dbus should be a bit smarter about only disabling its use of apparmor if it's inside a container.

However, cloud-init status --wait still hangs after systemd-logind starts up, so that wasn't the original problem (or at least wasn't the only problem)