Minor changes are required in the initdata docs to adapt the latest code flow.
The changes are:
1. under about-initdata_azure-cc:
switch " the default Kata Agent policy." with " the default permissive Kata Agent policy."
2. under creating-initdata_azure-cc:
in the example set the following to false:

ReadStreamRequest := false
ExecProcessRequest := false
SetPolicyRequest := false

in (5) the above specified kata-agent policy is the base policy recommended for confidential containers (this is even more than recommended, we encourage users to use at least this policy )