This is still an issue in 17.10 beta 1 (xubuntu 32 bits).

In my case, I created LVM partitions, and ubiquity suggested to install grub on 
dm-0, that sounded
odd to me, but I tried it. Grub failed to install. I could select new 
destination in the window,
to try, bug nothing happen when I accepted. Also, giving up installation 
option, was not responding either. Pretty much like what I remembered from 
previous versions. I don't know about unomounting /target/dev as the original 
poster said however. I finally 'sudo killall ubiquity' to give up installation 
and give better options (created a boot 30M boot partition before installing).

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https://bugs.launchpad.net/bugs/1267922

Title:
  Installer becomes confused and crashes when grub-install fails

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