Happened to me as well when I was trying to do a custom offline install
of 16.10 near the existing Windows 10. I told the installer I want
Ubuntu on /dev/sdb4 (logical) , and swap on /dev/sda4 (primary). It then
failed with exactly the described symptoms.

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https://bugs.launchpad.net/bugs/1639324

Title:
  Lubuntu 16.10 cannot be installed offline because misssing grub-pc
  (grub-install)

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