Comment 1 for bug 1598428

That error is the result of Ubuntu server/cloud images no longer having Python2 preinstalled, which is what Ansible still need. Hence, this isn't really a bug, but more the result of an explicit design decision.

https://wiki.ubuntu.com/XenialXerus/ReleaseNotes#Python_3

The easiest way forward ought to be to use the Ansible raw module to install Python2, which is still available in the repositories. See the following mailing list thread for more info, some examples, etc

https://groups.google.com/forum/#!topic/ansible-project/DUKzTho3OCI