Thanks for your report.
AFAIK <Ctrl>+<Shift>+U to type Unicode characters is a GTK+ feature, and
it's expected behavior that it doesn't work when XIM is the selected
input method. (It works when IBus or Fcitx is the selected IM, though.)
For a while Language Support has set XIM behind the scenes when opened
first time after a Xubuntu install. This has recently been changed via
bug #1605408, so XIM won't be automatically set in Xubuntu 16.04.2 and
16.10.
** Changed in: im-config (Ubuntu)
Status: New => Invalid
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https://bugs.launchpad.net/bugs/1621357
Title:
XIM won't allow entering unicode characters
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