Over this long weekend, I rebuilt my template on Debian Trixie. With having up to date software, there where some changes with cloud-init and ansible running on the first boot. It took a bit of time to figure out the changes. It seems like cloud-init runs the ansible playbooks before/in parallel with the cloud-init generating the ssh keys. Knowing this change, I know that cloud-init is not hung up and completed it work. Another thing that I have learned is that Cloud-init has to be installed for the full initial run of ansible. I have an ansible playbook to remove cloud-init after its initial run.