After following some random links from Launchpad I found this message:
https://lists.launchpad.net/duplicity-team/msg02653.html
Which discusses whether setting `GPG_OPTS="--pinentry-mode loopback"`
might fix it. I tried that and it does work.
I wish this information was easier to find. :(
** Changed in: duply (Ubuntu)
Status: New => Invalid
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https://bugs.launchpad.net/bugs/1638516
Title:
Fatal error with GPG after upgrade to Ubuntu 16.10
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