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Autoinstall is failing for Ubuntu Server IoT 20.04

vg flag

I am trying to automate Ubuntu Server 20.04 IoT. First thing is it doesn't generate autoinstall-user-data file for some reason. Then i used a very basic user-data(added below). It starts installation process and it runs for sometime finally getting error always at this point.

enter image description here

autoinstall-user-data

#cloud-config
autoinstall:
  version: 1
  identity:
    hostname: ubuntu-server
    password: "$6$exDY1mhS4KUYCE/2$zmn9ToZwTKLhCw.b4/b.ZRTIZM30JZ4QrOQ2aOXJ8yk96xpcCof0kxKwuX1kqLG/ygbJ1f8wxED22bTL4F46P0"
    username: ubuntu
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