Think I got the same with Lubuntu 16.10, because grub-install is not present, 
grub-pc
is not part of the DVD, and I was offline I got that dialog.

It is responsive (I can select any options) but if I select continue 
installation, or
end installation, or close the window with close decoration, nothing will make 
the
window to go away.

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https://bugs.launchpad.net/bugs/1608006

Title:
  "bootloader install failed" dialog unresponsive

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