I have a similar problem installing Qubes R4.0 - it fails when loading the 
graphical installer with an "unknown error". The error is similarily: 
"UnicodeDecodeError: 'utf-8' codec can not decode byte 0xc0 in position 3: 
invalid start byte".
Looking through the stack trace reveals that the problem is related to the file 
system (not hardware naming): "... line 67, in ensure_unicode_string
value = value.decode(sys.getfilesystemencoding())".
This is used in the blivet osinstall populator, I haven't read through this 
package yet though to figure out its purpose in detail.

I have been forced to use the nouveau.modeset = 0 flag to get the installer 
running to this stage, otherwise it stops before starting the graphical 
installer. I have also tried the text installer but it stops with the same 
error: https://imagebin.ca/v/4LROpDUqDhVz

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