This is fixed since the python code (instead of bash) behaves properly
now. Closing this bug (it's old, bug triage has taken a lot of dust).
Feel free to reopen should this sting you again.
** Changed in: squid-deb-proxy (Ubuntu)
Status: Triaged => Fix Released
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https://bugs.launchpad.net/bugs/889656
Title:
installer stops using proxy
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