I found a solution that works for me:

By default in xenial documentation:

d-i apt-setup/local0/repository string http://local.server/ubuntu xenial
main

But only adding word "deb" before the URL it works:

d-i apt-setup/local0/repository string deb http://local.server/ubuntu
xenial main

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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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