/etc/default/grub.d/50-system-image.cfg is in ubuntu-core-config 0.6.40.
This file is owned by root:root, with mode 0o644.
The actual contents of the file can be viewed below.
1 2 3 4 5 | # console only, no graphics/vga
GRUB_CMDLINE_LINUX_DEFAULT="console=tty1 console=ttyS0 panic=-1"
GRUB_TERMINAL=console
# LP: #1035279
GRUB_RECORDFAIL_TIMEOUT=0
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