Looks like you are right - updating to 1.157.8 seems to work ok.
** Changed in: linux-firmware (Ubuntu Xenial)
Status: In Progress => Fix Released
** Changed in: linux-firmware (Ubuntu Yakkety)
Status: In Progress => Fix Released
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https://bugs.launchpad.net/bugs/1674748
Title:
Intel 8265 does not work with 16.04 linux-firmware 1.157.8
Status in linux-firmware package in Ubuntu:
Fix Released
Status in linux-firmware source package in Xenial:
Fix Released
Status in linux-firmware source package in Yakkety:
Fix Released
Bug description:
SRU Justification
Impact: The current iwlwifi firmware lacks support for Intel 8265
wireless.
Fix: An updated version of the -22 ucode includes support for this
hardware.
Regression Potential: There were some regressions with earlier
versions of the -22 ucode, but testing the most recent update found
that these have been fixed. No additional regressions were found in
testing.
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Using the Intel wireless firmware from 1.161.1 should fix this issue
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