Cannot install Ubuntu MATE via tasksel

[Ubuntu User]

Steps to reproduce:
(*) During installation:
    -> Download the network installation iso.
    -> At the task selector, choose Ubuntu MATE Desktop.
    -> Installation will fail.
(*) After installation:
(Setting terminal to dumb so that the steps are visible -- You will see the same error if you use
the ncurses frontend.)

root@hostname:~# export TERM=dumb
root@hostname:~# tasksel
debconf: unable to initialize frontend: Dialog
debconf: (Dialog frontend will not work on a dumb terminal, an emacs shell buffer, or without a controlling terminal.)
debconf: falling back to frontend: Readline
Software selection
------------------

You can choose to install one or more of the following predefined collections of
software.

  1. Manual package selection 24. Samba file server
  2. Kubuntu live CD 25. Tomcat Java server
  3. Lubuntu live CD 26. Ubuntu desktop
  4. Ubuntu GNOME live CD 27. Ubuntu GNOME desktop
  5. Ubuntu live CD 28. Ubuntu MATE cloudtop
  6. Ubuntu MATE Live CD 29. Ubuntu MATE minimal installation
  7. Ubuntu Studio live DVD 30. Ubuntu MATE desktop
  8. Ubuntu Studio live CD 31. Ubuntu desktop USB
  9. Xubuntu live CD 32. Audio recording and editing suite
  10. Ubuntu Cloud Image (instance) 33. Ubuntu Studio desktop
  11. DNS server 34. Ubuntu Studio minimal DE installation
  12. Edubuntu desktop 35. Large selection of font packages
  13. Kubuntu desktop 36. 2D/3D creation and editing suite
  14. Kubuntu full 37. Photograph touchup and editing suite
  15. LAMP server 38. Publishing applications
  16. Lubuntu minimal installation 39. Video creation and editing suite
[More]

  17. Lubuntu Desktop 40. Virtual Machine host
  18. Mail server 41. Xubuntu minimal installation
  19. Mythbuntu master backend 42. Xubuntu desktop
  20. Mythbuntu slave backend 43. OpenSSH server
  21. Mythbuntu additional roles 44. Basic Ubuntu server
  22. Mythbuntu frontend 45. none of the above
  23. PostgreSQL database

(Enter the items you want to select, separated by spaces.)

Choose software to install: 30

xserver-xorg install
debconf: unable to initialize frontend: Dialog
debconf: (Dialog frontend will not work on a dumb terminal, an emacs shell buffer, or without a controlling terminal.)
debconf: falling back to frontend: Readline
Installing packages
-------------------

..100%

tasksel: apt-get failed (100)

Notes:
Task Ubuntu MATE minimal installation installs just fine.

ProblemType: Bug
DistroRelease: Ubuntu 16.04
Package: tasksel 3.34ubuntu3
ProcVersionSignature: Ubuntu 4.4.0-87.110-generic 4.4.73
Uname: Linux 4.4.0-87-generic x86_64
ApportVersion: 2.20.1-0ubuntu2.10
Architecture: amd64
CurrentDesktop: MATE
Date: Fri Jul 28 21:30:55 2017
EcryptfsInUse: Yes
PackageArchitecture: all
SourcePackage: tasksel
UpgradeStatus: No upgrade log present (probably fresh install)

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.

[Patrick Banholzer (patrick-banholzer)]

I can confirm this bug.

We had a working bare metal installation setup with tasksel run by foreman. Stopped working a few weeks ago.

At the moment we need to install mate manually after installing a minimal system.

[Simon Quigley (tsimonq2)]

I tried this in an Artful LXD container, the attached log might be relevant.