Also seeing this:

$ vboxmanage --version
5.0.10r104061

$ vagrant --version
Vagrant 1.8.1

$ vagrant box list |grep -i xenial
ubuntu/xenial64      (virtualbox, 20160420.3.0)
ubuntu/xenial64      (virtualbox, 20160509.0.0)
ubuntu/xenial64      (virtualbox, 20160531.0.0)

$ vagrant init ubuntu/xenial64
A `Vagrantfile` has been placed in this directory. You are now
ready to `vagrant up` your first virtual environment! Please read
the comments in the Vagrantfile as well as documentation on
`vagrantup.com` for more information on using Vagrant.

$ vagrant up
Bringing machine 'default' up with 'virtualbox' provider...
==> default: Checking if box 'ubuntu/xenial64' is up to date...
==> default: Setting the name of the VM: ubuntu-xenial-16.04-cloudimg
==> default: Fixed port collision for 22 => 2222. Now on port 2200.
==> default: Clearing any previously set network interfaces...
==> default: Preparing network interfaces based on configuration...
    default: Adapter 1: nat
==> default: Forwarding ports...
    default: 22 (guest) => 2200 (host) (adapter 1)
==> default: Running 'pre-boot' VM customizations...
==> default: Booting VM...
==> default: Waiting for machine to boot. This may take a few minutes...
    default: SSH address: 127.0.0.1:2200
    default: SSH username: ubuntu
    default: SSH auth method: password
    default: Warning: Remote connection disconnect. Retrying...
    default: Warning: Remote connection disconnect. Retrying...
    default: Warning: Remote connection disconnect. Retrying...
    default: Warning: Remote connection disconnect. Retrying...
    default: Warning: Authentication failure. Retrying...
    default:
    default: Inserting generated public key within guest...
    default: Removing insecure key from the guest if it's present...
    default: Key inserted! Disconnecting and reconnecting using new SSH key...
==> default: Machine booted and ready!
==> default: Checking for guest additions in VM...

$ vagrant ssh -- sudo grep hosts /etc/nsswitch.conf
sudo: unable to resolve host ubuntu-xenial
hosts:          files dns

$ vagrant ssh -- sudo grep ubuntu /etc/hosts
sudo: unable to resolve host ubuntu-xenial

$ vagrant ssh -- sudo grep 127 /etc/hosts
sudo: unable to resolve host ubuntu-xenial
127.0.0.1 localhost

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https://bugs.launchpad.net/bugs/1561250

Title:
  Xenial vagrant image is missing its hostname in /etc/hosts

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