I experience the same issue as OP after a clean install of Ubuntu 16.04
4.4.0-72.

Nothing can be done in recovery mode that takes longer than one minute,
otherwise some timeout fires, console spews several screens of messages
indicating processes being stopped, and it loops back into the recovery
mode menu; however now there is no keyboard or at least no keys respond
other than ESC, thus no way to navigate the menu even if were now
operable.

Hitting the ESC key at this point causes the following text to overwrite the 
first menu option:
  "sulogin: input overrun at /dev/tty1t"
But perhaps that is just an artifact of the unwanted and unrequested shutdown 
of system daemons.

Nothing more can be done at this point, a hard reboot is necessary.

This is repeatable, i.e. the same symptoms occur at each entry to
recovery mode.

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https://bugs.launchpad.net/bugs/1636503

Title:
  recovery mode gets borked after some time out

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