This bug was fixed in the package livecd-rootfs - 2.408.3

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livecd-rootfs (2.408.3) xenial-proposed; urgency=medium

  [ Louis Zuckerman ]
  * Fixes for vagrant box builder in ubuntu-cpc LP: #1565985
    - Install virtualbox-guest-utils
    - Don't disable default synced folder
    - Don't set vm name
    - Add cloud-init config to manage /etc/hosts LP: #1561250

 -- Brian Murray <br...@ubuntu.com>  Tue, 30 Aug 2016 13:17:55 -0700

** Changed in: livecd-rootfs (Ubuntu Xenial)
       Status: Fix Committed => Fix Released

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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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