make-network-process fails in Emacs 25

Question

make-network-process fails on Emacs25 (25.1.50.2 2016-07-03) when loaded with -q and -Q and trying to eval the following example:

(make-network-process
 :name "*server2*"
 :type nil ; stream
 :server t
 :host 'local
 :service t
 :family nil
 :nowait t
 :stop nil
 :noquery t)

;; Debugger entered--Lisp error: (file-error "make server process failed" "Success" :name "*server2*" :type nil :server t :host local :service t :family nil :nowait t :stop nil :noquery t)
;; make-network-process(:name "*server2*" :type nil :server t :host local :service t :family nil :nowait t :stop nil :noquery t)

The same example works on Emacs 24. This same issue is referenced here:

• https://stackoverflow.com/questions/38188397/emacs-make-network-process-fails-how-to-debug
• https://github.com/ahungry/geben/issues/4

Is this an Emacs bug? Is there a workaround?