Looks like you are right - updating to 1.157.8 seems to work ok.
** Changed in: linux-firmware (Ubuntu Xenial)
Status: In Progress => Fix Released
** Changed in: linux-firmware (Ubuntu Yakkety)
Status: In Progress => Fix Released
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https://bugs.launchpad.net/bugs/1674748
Title:
Intel 8265 does not work with 16.04 linux-firmware 1.157.8
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