For the record it was actually version 2.776 which fixed this:
livecd-rootfs (2.776) kinetic; urgency=medium
* Do not modify /etc/ssh/sshd_config for ubuntu-cpc project
builds. (LP: #1968873). The cloud-init bug (LP #1968873) got
fixed so using a config snippet now.
For the record it was actually version 2.776 which fixed this:
livecd-rootfs (2.776) kinetic; urgency=medium
* Do not modify /etc/ssh/ sshd_config for ubuntu-cpc project
builds. (LP: #1968873). The cloud-init bug (LP #1968873) got
fixed so using a config snippet now.