That is qemu commit:
commit d62d9dc4b814950dcc8bd261a3e2e9300d9065e6
Author: Fam Zheng <f...@redhat.com>
Date:   Thu Sep 17 13:04:10 2015 +0800

    vmdk: Create streamOptimized as version 3

Which is in:
>= qemu v2.6.0

So setting fixed in Yakkety, Zesty and marking it for work on a backport
to Xenial.

** Also affects: qemu (Ubuntu Xenial)
   Importance: Undecided
       Status: New

** Changed in: qemu (Ubuntu Xenial)
       Status: New => Triaged

** Changed in: qemu (Ubuntu Xenial)
   Importance: Undecided => High

** Changed in: qemu (Ubuntu)
       Status: Triaged => Fix Released

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https://bugs.launchpad.net/bugs/1646240

Title:
  qemu-image creats broken vmdk file

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