Tested on 4.10.0-041000rc1-generic #201612252031. The problem persists.
I had some warnings while installing kernel:
W: Possible missing firmware /lib/firmware/i915/kbl_dmc_ver1_01.bin for module
i915
W: Possible missing firmware /lib/firmware/i915/kbl_guc_ver9_14.bin for module
i915
W: Possible missing firmware /lib/firmware/i915/bxt_guc_ver8_7.bin for module
i915
** Tags added: kernel-bug-exists-upstream kernel-bug-exists-
upstream-4.10-rc1
** Changed in: linux (Ubuntu)
Status: Incomplete => Confirmed
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https://bugs.launchpad.net/bugs/1653009
Title:
Ubuntu 16.04 fails to boot from Sandisk usb stick with latest kernels
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