Why are you using xenial-proposed instead of xenial-updates?

-proposed installers are never ready for everyday consumption. And can
only be successfully used by enabling proposed archive.

If you must use xenial-proposed for whatever reason, one must also use
-proposed for the udebs and debs on the system. These are not enabled by
default.

Specifically please pass "apt-setup/proposed=true" as the kernel cmdline
argument and/or include equivalent in your preseed if used.

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https://bugs.launchpad.net/bugs/1702233

Title:
  Ubuntu16.04.3: Unable to install on Briggs system

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