Adding the following line to /etc/hosts will work around this issue:

127.0.1.1 ubuntu-xenial

According to Ubuntu's profile on https://atlas.hashicorp.com/ubuntu/,
bugs should be filed on the cloud-images project
(https://bugs.launchpad.net/cloud-images).

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https://bugs.launchpad.net/bugs/1561250

Title:
  Xenial vagrant image is missing its hostname in /etc/hosts

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