Confirmed that Yakkety main kernel boots and logs into the desktop.

% uname -a
Linux anarchist 4.8.0-040800rc1-generic #201609281024 SMP Wed Sep 28 14:26:22 
UTC 2016 x86_64 x86_64 x86_64 GNU/Linux
% dpkg-query -W linux-image-generic
linux-image-generic     4.8.0.19.28

Thanks!

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https://bugs.launchpad.net/bugs/1627198

Title:
  4.8.0 kernels do not complete boot process on VM

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