On RHEL 6.9 cloud os when trying to create a user "cloud" via cloud-init by modifying the /etc/cloud/cloud.cfg file I get the below error.Please suggest

service cloud-init start

Starting cloud-init: Cloud-init v. 0.7.5 running 'init' at Tue, 27 Feb 2018 06:42:33 +0000. Up 103.30 seconds.
ci-info: ++++++++++++++++++++++++++Net device info+++++++++++++++++++++++++++
ci-info: +--------+------+--------------+---------------+-------------------+
ci-info: | Device | Up | Address | Mask | Hw-Address |
ci-info: +--------+------+--------------+---------------+-------------------+
ci-info: | lo | True | 127.0.0.1 | 255.0.0.0 | . |
ci-info: | eth0 | True | 192.168.1.49 | 255.255.255.0 | fa:16:3e:fa:63:46 |
ci-info: +--------+------+--------------+---------------+-------------------+
ci-info: ++++++++++++++++++++++++++++++++++Route info+++++++++++++++++++++++++++++++++++
ci-info: +-------+-----------------+-------------+-----------------+-----------+-------+
ci-info: | Route | Destination | Gateway | Genmask | Interface | Flags |
ci-info: +-------+-----------------+-------------+-----------------+-----------+-------+
ci-info: | 0 | 169.254.169.254 | 192.168.1.1 | 255.255.255.255 | eth0 | UGH |
ci-info: | 1 | 192.168.1.0 | 0.0.0.0 | 255.255.255.0 | eth0 | U |
ci-info: | 2 | 0.0.0.0 | 192.168.1.1 | 0.0.0.0 | eth0 | UG |
ci-info: +-------+-----------------+-------------+-----------------+-----------+-------+
2018-02-27 01:42:41,568 - util.py[WARNING]: Failed to create user cloud
2018-02-27 01:42:41,570 - util.py[WARNING]: Running users-groups () failed
2018-02-27 01:42:41,580 - util.py[WARNING]: Applying ssh credentials failed!
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