So the strace shows the expected behavior as far as detecting and
connecting to your proxy, it then shows the expected "CONNECT" command
being issued, the rest after that point is a TLS discussion so not
something that can be figured out from an strace...

That combined with the fact that using images: works as expected, makes
me strongly suspect something weird going on with your proxy server...
Can you share any details as to what software is used for that proxy,
what version and even better, what configuration?

I tried here with squid3 from trusty and xenial and can't reproduce the
problem.

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https://bugs.launchpad.net/bugs/1575386

Title:
  Proxy issue with 16.04

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