I have the same problem with 16.10 RC for beta2.

** Description changed:

- After entering my WIFI password and being connected to the INTERNET, the
+ After entering my WIFI password and being connected to the Internet, the
  option to download updates while installing is grayed out.
  Obviously, i am connected to Internet since i can file this report from
  the machine in question.
  ProblemType: Bug
  DistroRelease: Ubuntu 16.10
  Package: ubiquity 16.10.7
  ProcVersionSignature: Ubuntu 4.4.0-34.53-lowlatency 4.4.15
  Uname: Linux 4.4.0-34-lowlatency x86_64
  ApportVersion: 2.20.3-0ubuntu7
  Architecture: amd64
  CasperVersion: 1.377
  CurrentDesktop: XFCE
  Date: Sun Aug 21 13:00:12 2016
  InstallCmdLine: file=/cdrom/preseed/ubuntustudio.seed boot=casper 
initrd=/casper/initrd.lz quiet splash ---
  LiveMediaBuild: Ubuntu-Studio 16.10 "Yakkety Yak" - Alpha amd64 (20160818)
-  TERM=xterm
-  PATH=(custom, no user)
-  LANG=en_US.UTF-8
-  SHELL=/bin/bash
+  TERM=xterm
+  PATH=(custom, no user)
+  LANG=en_US.UTF-8
+  SHELL=/bin/bash
  SourcePackage: ubiquity
  UpgradeStatus: No upgrade log present (probably fresh install)

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  "Download updates while installing" greyed out even when connected to

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