I really don't know if you're going to run into issues changing the umask from 022 to 027 (perhaps not).
/etc/init.d/functions is referenced by any rc script that has the following line:
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Setting up Secure Ubuntu server on VMware
1. Insert the Ubuntu Server distribution CD or attach the ISO of the CD which is in the “Datastore”. Note that it is important to install the x64 edition on servers, not the X86 editions.
2. Power on th…