Activating EFI boot (Settings->System->Motherboard) in my Virtual
Machine appears to have fixed the issue for me as well (Windows 10, 64
bit, VirtualBox 5.1.2)

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https://bugs.launchpad.net/bugs/1574316

Title:
  Defective display when booting from 16.04 LiveCD (Ubuntu and Xubuntu)
  in Virtualbox

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