"About the virtualbox-guest-dkms package, I'm not sure it is really
needed in 16.04 as xenial kernel already packs virtualbox's guest
modules(you can lsmod it even without installing the package)"

Actually, I had the same problem. Installing this package solved it.
Error gone and pasting and screen resize is now working fine.

Thanks for the help.

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https://bugs.launchpad.net/bugs/1580482

Title:
  Virtualbox guest additions isn't working properly in Ubuntu 16.04

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