Ok, so i tested alternative ISO, and it works from USB/BIOS mode.

So, the issue is with grml-rescueboot on 16.04. There are several
manuals on internet suggesting to use GRML for booting ubuntu installer
ISO, and all other ISOs (except alternate) are working fine.

** Also affects: grml-rescueboot (Ubuntu)
   Importance: Undecided
       Status: New

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https://bugs.launchpad.net/bugs/1768968

Title:
  Alternate installer missing install option.

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