I disabled the floppy controller at BIOS then the process proceeded as I
described above.

The bug #739774 you mentioned said it's fixed in the beginning of this
month but what I tested is a release candidate for Ubuntu Studio. I
think it should be fixed but I faced it.

Regards

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https://bugs.launchpad.net/bugs/769704

Title:
  Install doesn't proceed because of I/O error for floppy disk drive

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