This doesn't look like a bug in apt. It looks more like apt-setup is creating
a bogus proxy entry, as it was noticed upstream. There it was also reassigned
to apt-setup.
I can confirm that I was also bitten by this bug during installing Dapper
6.06.1 Server
(netboot and CD installation)
** Also affects: apt-setup (Ubuntu)
Importance: Untriaged
Status: Unconfirmed
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apt cant work with disable proxy
https://launchpad.net/bugs/47044
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