Can you see if this issue also happens with the latest daily image?  It can be 
downloaded from:
Desktop:
http://cdimage.ubuntu.com/daily-live/current/
Server:
http://cdimage.ubuntu.com/ubuntu-server/daily/current/


** Changed in: linux (Ubuntu)
   Importance: Undecided => High

** Tags added: kernel-da-key

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https://bugs.launchpad.net/bugs/1640245

Title:
  Ubuntu Server 16.04 install errors on linux-generic (dependency
  problem)

Status in linux package in Ubuntu:
  Confirmed

Bug description:
  I've tried several times to install Ubuntu Server 16.04.1 (and 16.04)
  and both error out and stop when installing linux-generic package
  during the "Install Base System" step of the install. The error
  message suggests running an apt-get command to fix a dependency
  problem but there's no apt-get available since this is during the
  system install.

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