the local loopback is configured by /etc/network/interfaces. I had
residual config from previous installations in that file which
apparently prevents n-m from managing the network interfaces at all in
7.04.

Having removed everything *but* the local loopback configuration, n-m
now detects and manages the network interfaces as normal.

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network-manager does not detect network
https://bugs.launchpad.net/bugs/83466
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