I have the same issue. Tried with Ubuntu 16.04.3 x64 with easy install scritps:
wget https://raw.githubusercontent.com/frappe/bench/master/playbooks/install.py
python install.py --develop --user frappe
Do you use the same easy install script? There might be a problem with the script
TASK [init bench] **************************************************************************************************************************************
fatal: [localhost]: FAILED! => {"changed": true, "cmd": ["bench", "init", "/home/frappe/frappe-bench", "--frappe-branch", "develop"], "delta": "0:02:27.106953", "end": "2018-02-25 10:37:30.124451", "failed": true, "rc": 1, "start": "2018-02-25 10:35:03.017498", "stderr": "INFO:bench.utils:virtualenv -q env -p /usr/bin/python\nINFO:bench.utils:./env/bin/pip -q install --upgrade pip\nINFO:bench.utils:./env/bin/pip -q install wheel\nINFO:bench.utils:./env/bin/pip -q install six\nINFO:bench.utils:./env/bin/pip -q install -e git+https://github.com/frappe/python-pdfkit.git#egg=pdfkit\nINFO:bench.app:getting app frappe\nINFO:bench.utils:git clone https://github.com/frappe/frappe.git --branch develop --origin upstream\nCloning into 'frappe'...\nINFO:bench.app:installing frappe\nINFO:bench.utils:/home/frappe/frappe-bench/env/bin/pip install -q -e /home/frappe/frappe-bench/apps/frappe --no-cache-dir\nTraceback (most recent call last):\n File \"/usr/local/bin/bench\", line 11, in <module>\n load_entry_point('bench', 'console_scripts', 'bench')()\n File \"/home/frappe/.bench/bench/cli.py\", line 40, in cli\n bench_command()\n File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 722, in __call__\n return self.main(*args, **kwargs)\n File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 697, in main\n rv = self.invoke(ctx)\n File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 1066, in invoke\n return _process_result(sub_ctx.command.invoke(sub_ctx))\n File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 895, in invoke\n return ctx.invoke(self.callback, **ctx.params)\n File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 535, in invoke\n return callback(*args, **kwargs)\n File \"/home/frappe/.bench/bench/commands/make.py\", line 28, in init\n python \t\t = python)\n File \"/home/frappe/.bench/bench/utils.py\", line 75, in init\n update_node_packages(bench_path=path)\n File \"/home/frappe/.bench/bench/utils.py\", line 436, in update_node_packages\n v = semantic_version.Version(get_current_version('frappe'))\n File \"/home/frappe/.bench/bench/app.py\", line 257, in get_current_version\n with open(os.path.join(repo_dir, os.path.basename(repo_dir), '__init__.py')) as f:\nIOError: [Errno 2] No such file or directory: './apps/frappe/frappe/__init__.py'", "stderr_lines": ["INFO:bench.utils:virtualenv -q env -p /usr/bin/python", "INFO:bench.utils:./env/bin/pip -q install --upgrade pip", "INFO:bench.utils:./env/bin/pip -q install wheel", "INFO:bench.utils:./env/bin/pip -q install six", "INFO:bench.utils:./env/bin/pip -q install -e git+https://github.com/frappe/python-pdfkit.git#egg=pdfkit", "INFO:bench.app:getting app frappe", "INFO:bench.utils:git clone https://github.com/frappe/frappe.git --branch develop --origin upstream", "Cloning into 'frappe'...", "INFO:bench.app:installing frappe", "INFO:bench.utils:/home/frappe/frappe-bench/env/bin/pip install -q -e /home/frappe/frappe-bench/apps/frappe --no-cache-dir", "Traceback (most recent call last):", " File \"/usr/local/bin/bench\", line 11, in <module>", " load_entry_point('bench', 'console_scripts', 'bench')()", " File \"/home/frappe/.bench/bench/cli.py\", line 40, in cli", " bench_command()", " File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 722, in __call__", " return self.main(*args, **kwargs)", " File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 697, in main", " rv = self.invoke(ctx)", " File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 1066, in invoke", " return _process_result(sub_ctx.command.invoke(sub_ctx))", " File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 895, in invoke", " return ctx.invoke(self.callback, **ctx.params)", " File \"/usr/local/lib/python2.7/dist-packages/click/core.py\", line 535, in invoke", " return callback(*args, **kwargs)", " File \"/home/frappe/.bench/bench/commands/make.py\", line 28, in init", " python \t\t = python)", " File \"/home/frappe/.bench/bench/utils.py\", line 75, in init", " update_node_packages(bench_path=path)", " File \"/home/frappe/.bench/bench/utils.py\", line 436, in update_node_packages", " v = semantic_version.Version(get_current_version('frappe'))", " File \"/home/frappe/.bench/bench/app.py\", line 257, in get_current_version", " with open(os.path.join(repo_dir, os.path.basename(repo_dir), '__init__.py')) as f:", "IOError: [Errno 2] No such file or directory: './apps/frappe/frappe/__init__.py'"], "stdout": "Already using interpreter /usr/bin/python\n('installing', u'frappe')\nUpdating node packages...", "stdout_lines": ["Already using interpreter /usr/bin/python", "('installing', u'frappe')", "Updating node packages..."]}