I see the same behaviour, but I'm not sure if the cause is the same, on
4.4.0-112-generic and 4.4.0-116-generic. In my case, the VM remains
responsive for a variable amount of time. Sometimes it works long enough
to login via SSH, at other times it does not get to the login screen. In
almost all circumstances I cannot see what is wrong with the system
(nothing gets printed to screen), and I see the VM use up all available
CPUs. Likewise, the only way to get out of that is to do a hard reset.

Booting with 4.4.0-109 never gives this problem.

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  Kernel linux-image-4.4.0-112-generic prevent the boot on Microsoft
  Hyper-v 2016 Gen2 VM

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