I could reproduce this issue with my preseed.
However, if I remove the part of language and keyboard selection of the 
preseed, and then manually selecting they as English,
this issue could not reproduce and the system would be installed successfully 
via PXE.

Here is what I removed:

## Locale sets language and country.
#d-i debian-installer/locale string en_US
#
## Keyboard selection.
## Disable automatic (interactive) keymap detection.
#d-i console-setup/ask_detect boolean false
#d-i keyboard-configuration/ask_detect boolean false
##d-i console-setup/modelcode string pc105
#d-i console-setup/layoutcode string us
#d-i keyboard-configuration/layoutcode string us
## To select a variant of the selected layout (if you leave this out, the
## basic form of the layout will be used):
##d-i console-setup/variantcode string dvorak

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https://bugs.launchpad.net/bugs/1551285

Title:
  ubiquity crashed with UnicodeDecodeError in decode(): 'ascii' codec
  can't decode byte 0xc5 in position 8782: ordinal not in range(128)

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