Nov 20 14:41:36 dal1_dev1_node4 coreos-cloudinit[579]: Fetching meta-data from datasource of type "proc-cmdline"
Nov 20 14:41:36 dal1_dev1_node4 coreos-cloudinit[579]: 2014/11/20 14:41:36 Parsing user-data as cloud-config
Nov 20 14:41:36 dal1_dev1_node4 coreos-cloudinit[579]: Processing cloud-config from user-data
Nov 20 14:41:36 dal1_dev1_node4 coreos-cloudinit[579]: 2014/11/20 14:41:36 Authorized SSH keys for core user
Nov 20 14:41:36 dal1_dev1_node4 coreos-cloudinit[579]: Failed to apply cloud-config: Unable to parse file permissions as octal integer
Nov 20 14:41:36 dal1_dev1_node4 systemd[1]: user-cloudinit-proc-cmdline.service: main process exited, code=exited, status=1/FAILURE
Nov 20 14:41:36 dal1_dev1_node4 systemd[1]: Failed to start Load cloud-config from url defined in /proc/cmdline.
Nov 20 14:41:36 dal1_dev1_node4 systemd[1]: Dependency failed for Load user-provided cloud configs.
Nov 20 14:41:36 dal1_dev1_node4 systemd[1]: Unit user-cloudinit-proc-cmdline.service entered failed state.

Pxe booted machine. Rolling back to 494.0 resolves issue.