That's not the way it works.
In order to use a theme you need to change GRUB_TERMINAL=gfxterm in
/etc/default/grub
I agree it's not well documented (not to say not at all) The grub wiki
(http://grub.enbug.org/FrontPage) is a good source of information.
I'm changing the status of this report to a documentation issue.
** Changed in: grub2 (Ubuntu)
Status: Incomplete => Triaged
** Summary changed:
- package memtest86+ 4.00-2ubuntu2 failed to install/upgrade: No path or device
is specified.
+ Add documentation about how to change grub2 theme (running update-grub fails
with No path or device is specified.)
** Changed in: grub2 (Ubuntu)
Importance: Undecided => Low
--
Add documentation about how to change grub2 theme (running update-grub fails
with No path or device is specified.)
https://bugs.launchpad.net/bugs/533728
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