Alternate installer missing install option.

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I'm not entirely sure what "booting with GRML" entails. I've just tested here on real hardware with UEFI firmware and KVM with OVMF, and both show a complete set of grub entries. And, of course, booting in BIOS mode doesn't get grub at all, but rather isolinux/gfxboot.

Adam, GRML is package for existing ubuntu installation that loads ISO from grub of existing install. My hardware is not EFI, so regular BIOS boot.
I suspect some ISO build tools are broken at some point (so no idea which package i should select), unfortunately currently i don't have any external media to test.

to test grml boot:

# apt install grml-rescueboot
# mv ubuntu-18.04-server-amd64.iso /boot/grml/
# update-grub

> I suspect some ISO build tools are broken at some point

I would contend that if the ISO boots the way it was intended to (from BIOS or UEFI), it's working fine. Note that "grml-rescueboot", per its own definition, is for booting GRML ISOs, not just any random ISO. Maybe there's something we can do to make them get along, but it's hardly a primary goal of either project.

Ok, so i tested alternative ISO, and it works from USB/BIOS mode.

So, the issue is with grml-rescueboot on 16.04. There are several manuals on internet suggesting to use GRML for booting ubuntu installer ISO, and all other ISOs (except alternate) are working fine.