I have the exact same problem but I can't find mame 2016 folder under the bios folder on my image-virtualman 128gb arcade but it must be there as it is an option to use to open the rom file!
Any idea why, or where it could be??
@bollwerk I tried it now and sometimes the game loads, sometimes it doesn't, and sometimes it works without the menu screens. Weird. I am using an experimental kernel and the kms video driver so there might be bugs with that.