Same problem after upgrade from 14.04 to 16.04. (Dell Precision M4700) After reboot, ifconfig displays IP address and all seems well. Connecting to local IP works, but internet fails. I found another workaround by adding eth0 configuration to the /etc/network/interfaces, then, after reboot I stop the network manager: service network-manager stop then: ifdown eth0 then: ifup eth0 and internet works. So, seems indeed a DNS problem.
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