This is the scenario that will happen when an application goes through deploy, disable, enable lifecycle:
At step 3, looks like the VM is started without remounting the disk with new keys. Hence 'register-startup' fails when the VM comes up. VM console shows the error as attached (vm_restart.png)
Also, vmLifecycle.start(vm) seems to come out immediately without waiting for the VM to come up completely (this is to do with waiting for startupLatch).
This issue can be reproduced by creating a template for Database ServiceType (refer attached kvm_setup.sh) and run the attached 'create-simple-service' command.