The symptoms described were caused by missing configuration in squid-deb-proxy 
(used as the apt proxy for the build). Puppet labs URL needed to be added to 
the exemption list. So this is not a bug but behaviour as designed.
Please close this bug, I have marked it as invalid.

** Changed in: debian-installer (Ubuntu)
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/1313171

Title:
  apt-setup repo with GPG KEY fails

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