I can confirm this bug. Happens to me if I try to preseed install Ubuntu
Xenial (with Foreman). The bad news is, that the install fails because
apt is unable update (with the error in sources.list) and so no packages
for kernel etc. can be found. For me that means I cannot use Xenial at
the moment (if I cannot use preseed install it makes no sense on an LTS
release).

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https://bugs.launchpad.net/bugs/1566757

Title:
  preseed fails to add custom repos with apt-setup/local0/repository in
  xenial

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