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I am waiting for 1.28 support in rancher to really try it out, but it is said to be available from 1.27

It’s a vsphere provisioning issue. It provisions VM with an IDE CDrom for the userdata, but ARM does not support IDE, only sata. So cloud-init never reads the userdata. Workaround is to power it off immediately when it’s provisioned and change to sata, and then cloud-init runs and it joins the cluster.

interesting