Create a cloud init vm using API only

[Zernox]

Hello there.
I am attempting to create a vm or rather vm template using the proxmox api via proxmoxxer.
But I run into multiple issues.
1. Creating a template does not work at all via api or rather creating a bootable vm with cloudinit
2. Cloud init it self from template does not work using api. (it creates a vm from the template but cloud init does not set password, ip nor any other param)

Here is how I create (or attempt to) the vm. Anyone notice an issue? I oriented myself at the help article of proxmox and clone it to api calls.

def _create_cloud_init_vm(
        proxmox: ProxmoxInterface,
        node: str,
        vmid: int,
        order: dict[str, Any],
        image: dict[str, Any],
        storage_name: str,
) -> str:
        #STORAGE:import/TEST-noble-server-cloudimg-amd64.img.raw
        image_path = image.get("imagepath")
        
        public_key, private_key_path = _generate_ssh_key_pair(
            vmid=vmid,
            system_name=order["systemName"],
        )

        connection = proxmox.connection
        vm_created = False

        try:
            # Create the VM and Cloud-Init drive
            task = connection.nodes(node).qemu.create(
                vmid=vmid,
                name=order["systemName"],
                cores=int(order["cpu"]),
                memory=int(order["ram"]) * 1024,
                cpu="x86-64-v2-AES",
                net0=_build_vm_network(order),
                agent="enabled=1",
                ostype="l26",
                description=genereate_documentation(order),
                tags=_build_tags(order),
            )
            _wait_for_task(connection, node, task)
            vm_created = True
            connection.nodes(node).qemu(vmid).config.put(
                scsihw="virtio-scsi-single",
                scsi0=(
                    f"{storage_name}:0,"
                    f"import-from={image_path},"
                    "discard=on,"
                    "ssd=1,"
                    "iothread=1"
                ),
            )

            # PUT /nodes/{node}/qemu/{vmid}/resize
            task = connection.nodes(node).qemu(vmid).resize.put(
                disk="scsi0",
                size=f"{int(order['storage'])}G",
            )
            if task:
                _wait_for_task(connection, node, task)

            # PUT /nodes/{node}/qemu/{vmid}/config
            connection.nodes(node).qemu(vmid).config.put(
                ide2=f"{storage_name}:cloudinit",
                boot="order=scsi0",
                tablet=0,
                localtime=0,
                sshkeys=quote(public_key.strip(), safe=""),
                ipconfig0="ip=dhcp",
            )


            # Start the VM
            task = connection.nodes(node).qemu(vmid).status.start.post()
            if task:
                _wait_for_task(connection, node, task)

            return private_key_path

        except Exception:
            # Remove the incomplete VM
            if vm_created:
                try:
                    task = connection.nodes(node).qemu(vmid).delete(
                        purge=1,
                        destroy_unreferenced_disks=1,
                    )
                    if task:
                        _wait_for_task(connection, node, task)
                except Exception:
                    pass
            raise

The vm of this function seems to have cloud init and a drive with right size but bootloops. (no bootable media)
And when I create a vm from a template created like in the proxmox guide. It boots alright but no cloudinit function or setup is ran.