OK, so I have spent quite some time typing this bug report but ultimately found the solution. I leave a comment in case other people face the same issue.
After a lot of head scratching: You have to run "sudo update-initramfs -u" to regenerate the image! What a pity it's not in the docs! (upstream issue?) -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/1565083 Title: 16.04 beta2, cannot override udev network interface name in VM To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/systemd/+bug/1565083/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs