I am having the same issue, not in a VM.  Ubuntu 16.04.1 LTS.  eth0 is a wired 
network controller.  I've attached a tar file containing:
- relevant syslog messages
- output of 'ethtool eht0'
- output of 'ethtool -i eth0'
- output of 'lspci -vvv'

I'm not sure what other information would be relevant but am happy to
provide it on request, either when the system is in the problem state or
otherwise.

I recover the situation by clicking the "Wired connection 1" in the
network indicator panel.

Clearly there are at least 3 problems here:
1. The network connection is lost
2. There is no reason given for the loss of connection
3. The connection is not automatically recovered


** Attachment added: "Output of various commands"
   
https://bugs.launchpad.net/ubuntu/+source/avahi/+bug/1586528/+attachment/4855862/+files/command_output.tar

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https://bugs.launchpad.net/bugs/1586528

Title:
  Avahi-daemon withdraws address record

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