I just installed yakkety, and got a similar result.  All of the cloud-
images and maas images have lvm2 already built in, so this would not be
seen there.

$ sudo vgcreate localvg
  Command failed with status code 5.

I installed yakkety like this.
#!/bin/bash
virt-install \
--connect qemu:///system \
--virt-type kvm \
--name yakketylvm \
--ram 2048 \
--disk pool=VMs,size=10 \
--graphics vnc \
-l ftp://ftp.utexas.edu/pub/ubuntu/dists/yakkety/main/installer-amd64/ \
--os-variant ubuntu16.04


** Changed in: lvm2 (Ubuntu)
       Status: Fix Released => Confirmed

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https://bugs.launchpad.net/bugs/1626166

Title:
  lvm2 not starting lvm2-lvmetad on package install

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