I am having the same issue with Ubuntu 16.04 LTS with UCP versions 3.1.0, 3.1.1, 3.1.2 .
unable to reconcile state of Kubernetes addons component: error while deploying addon compose: context deadline exceeded
ucp-reconcile container exited with status code: 1
ERRO[0667] Unable to successfully setup local node. Run "docker logs ucp-reconcile" for more details
FATA[0667] reconcile exited with non-zero status: 1