@Nish, after a superficial RCA I can say here is probably some mistake from my 
side. Perhaps, in previous release (sadly I can't find particular ISO where I 
faced with issue) were some parts of upstart ('/sbin/start' for example) which 
causes issue like in comment #8.
For now I can't reproduce on a clean installation from latest available iso 
without explicit upstart installation.
So, you must be right about "a 14.04 -> 16.04 issue".

> what is the basis (test case) for the OP statement
Seems like you need to install upstart first.
I didn't make check on a latest ISO's, sorry for that.

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https://bugs.launchpad.net/bugs/1570472

Title:
  Set systemd as default service provider

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