Olivia has provisioned a new virtual machine in a cloud environment and is conducting forensic exercises to practice cloud forensic activities. She discovers data on her newly provisioned drive when she begins to analyze the drive. What issue has Olivia encountered?

Olivia has encountered a resource reuse issue. It is likely that the drive was reallocated without being securely wiped and that the previous user did not encrypt their drives. While this is unlikely with major cloud service providers now, it has been observed in the past and could still occur. There is no indication that a VM escape occurred that would run software on the host hypervisor, and no procedural issues around chain of custody or legal hold are described in the question.