Ee site creation fails

Using command sudo ee site create --wpfc fails.

VMWare Fusion 8. Ubuntu 16.04.1

Tested fast_cgi and it failed so I removed nginx and installed nginx-custom. fast_cgi test passed.

reloaded nginx … still fails

ee.log: Err:24 denial/main amd64 Packages 404 Not Found [IP: 80] Reading Package Lists… Oops… Something went wrong!

That is the only error I found in the logs.