I can confirm that this parameter seems to be ignored.
I've recently witnessed this on 17.10, and have previously seen this happening 
on Xenial and Zesty.
Steps to reproduce are easy:

- Create a new virtual machine in virtualbox with all default options 
(including networking)
- Proceed to install the system
- Monitor network usage

You'll notice a large amount of data is downloaded during install.

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https://bugs.launchpad.net/bugs/1714723

Title:
  questioning lack of updates thus whether installation option was
  ignored

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