Exactly the same issue. It starts since I did upgrade from 16.04.5 to
16.04.6. I attached the related config files: /etc/default/grub and
/boot/grub/grub.cfg. My case is definitely not like #13: I have /boot
entry in /etc/fstab and I double checked that when I do `update-grub'
/boot is mounted, has free space and populated accordingly:

$ cat /etc/fstab| grep /boot
# /boot was on /dev/sda7 during installation
UUID=XXXX /boot           ext3    defaults        0       2

$ df -h | grep /boot
/dev/sda7         2.0G  125M  1.7G   7% /boot

$ lsb_release -a
No LSB modules are available.
Distributor ID: Ubuntu
Description:    Ubuntu 16.04.6 LTS
Release:        16.04
Codename:       xenial

I also tried #33 workaround: doesn't work for me.

P.S. The most inconvenient thing for me in this is that I have a
bluetooth keyboard as my primary keyboard, so now, since I did this
upgrade, I have to keep another one physically attached keyboard each
time when I want to boot.

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https://bugs.launchpad.net/bugs/1273764

Title:
  Grub ignores TIMEOUT options on /etc/default/grub

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