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Current situation
Currently you cannot provision Flatcar Linux nodes using Rancher on vSphere due to how the cloudinit labels and paths are setup. Rancher uses rancher-machine (fork of docker-machine) and it creates a config drive with the label cidata and the root path just has the files user-data and meta-data instead of user_data/meta_data under an openstack/latest path.
Impact
Unable to provision Flatcar using Rancher 2 on vSphere.
Ideal future situation
Ability to provision Flatcar nodes using Rancher 2 on vSphere.
Implementation options
Add check to cloudinit to look for a drive label cidata and user-data and meta-data files in the root path of the drive as a cloud-init source.
Note: Usage of ignition is not possible right now due to Rancher (rancher-machine) only supporting cloud-init.
chifu1234, acobaugh, domdepasquale and christianmellor