This can be resolved by cherrypicking:
console-setup (1.142ubuntu5) yakkety; urgency=medium
* debian/console-setup-linux.setvtrgb.service: add condition to only
execute when /dev/tty0 exists. This is the same condition as used by
getty@.service unit to prevent attempting setting up VT when none are
present. This is a common case on serial only architectures and
virtual machines. Resolves degraded boots on s390x/ppc64el.
-- Dimitri John Ledkov <x...@ubuntu.com> Mon, 26 Sep 2016 13:31:08
+0100
** Changed in: console-setup (Ubuntu Xenial)
Status: Triaged => In Progress
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https://bugs.launchpad.net/bugs/1660598
Title:
s390x boots degraded by default in z/vm
Status in console-setup package in Ubuntu:
Fix Released
Status in console-setup source package in Xenial:
In Progress
Bug description:
$ systemctl list-units --failed
setvtrgb.service loaded failed failed Set console scheme
[Impact]
* Default installations boot degraded by default; therefore prevent noticing
when systems are fully booted / if there is something else that is failing.
[Test Case]
* Install updated console-setup-linux
* Reboot
* The system should come up as running ($ systemctl is-system-running)
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https://bugs.launchpad.net/ubuntu/+source/console-setup/+bug/1660598/+subscriptions
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