I rate #989560 as a grub-common bug, *not* a xen-hypervisor-common bug. As you've noticed, the problem is with the file /etc/grub.d/20_linux_xen, which is part of grub-common, not xen-hypervisor-common.
A working grub.cfg will be generated by the version of the file from GRUB 2.04. If you can deal with installing *only* GRUB from testing, that should work. The bug should be reassigned to grub-common, but marked as effecting Xen so duplicate reports don't show up (actually I'm pretty sure reports against grub-common or src:grub2 already exist). -- (\___(\___(\______ --=> 8-) EHM <=-- ______/)___/)___/) \BS ( | ehem+sig...@m5p.com PGP 87145445 | ) / \_CS\ | _____ -O #include <stddisclaimer.h> O- _____ | / _/ 8A19\___\_|_/58D2 7E3D DDF4 7BA6 <-PGP-> 41D1 B375 37D0 8714\_|_/___/5445