WARNING: This image is OVERSIZED. This should never happen during milestone testing.
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I tested in UEFI mode:
With the boot options 'quiet splash' the bug pushes to 'Try Lubuntu' even when 'Install Lubuntu' was selected in the grub menu. But without 'quiet splash', the system arrives at the 'Install Lubuntu' desktop with Ubiquity and without the panel and icons. So with this work-around the bug is grey, not red, in UEFI mode.
The bug #1570901 affects the current daily Lubuntu Xenial, when booting from cloned images via USB.
The reason for this comment is that many issues for DVD systems are also found for cloned USB systems, while grub [and iso] systems may behave in a different way.