I sorta-resolved it for me by running a netboot expert install and
selecting GRUB2 instead. :-) (Yes, the grub-install on GRUB1 failed in
the same way there too.) Noted caveats on using GRUB2 but it seems to
work for me so may be worth a try for the desperate looking here for
answers.

-- 
ubiquity crashed with InstallStepError in configure_bootloader()
https://bugs.launchpad.net/bugs/260001
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