I encountered the exact same issue with loss of network upgrading Ubuntu
12.04LTS 32-bit to 14.04LTS 32-bit on a Hyper-V VM (Windows 2008R2). I
went through the same steps to do a fresh install of 14.04LTS 32-bit and
had the same result.  Also found Ubuntu 14.04LTS 64-bit worked well and
did not experience this issue.

After much testing, I found that if I dropped the RAM of the Ubuntu
14.04LTS VM to 4014MB on 2008R2 Hyper-V (4026MB on Hyper-V 2012R2), the
network adapter will show up and network connectivity will resume (Will
have internal system errors however). I then dropped to 2048MB and
Ubuntu is stable and network is connected. My Ubuntu 12.04LTS 32-bit VMs
run 4GB wonderfully and never experienced issues with memory/networking.

Also tested on different hosts and found this network issue is the same
on Hyper-V versions 2008R2, 2012 and 2012R2 when memory is pushed to 4GB
for the VMs.

I tested Ubuntu 14.04LTS 32-bit on a physical machine with 4GB of RAM
and system runs great, no network issues.

The download of 14.04LTS 32-bit does display "for machines running 2GB
or less".

How much memory are you giving affected VMs?

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https://bugs.launchpad.net/bugs/1338185

Title:
  networking fails in 32-bit 14.04 using HyperV on Win2012R2

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