I am running Armory 0.96.1 (but the problem was also there with 0.96) and Bitcoin Core 0.14.1 on Ubuntu 16.04.
When I start Armory, everything seems normal. The transactions tab shows newest transactions, and the Dashboard tab says "Armory is online". The node count in the righthand lower corner of the window shows correct block height at Armory startup, but the text next to it says "Node offline".
bitcoind is indeed running in the background, and it is shut down as expected if I close the Armory window. "bitcoin-cli getinfo" shows the correct blockheight at any given time, although Armory's blockheight is stuck at whatever it was when loading Armory.
If I close down Armory and restart it, it updates to whatever the new blockheight might be and it shows any new transactions in those new blocks, but still "Node offline" in the status line, and transactions happening while Armory is running go unnoticed.
I have tried removing the tick in the "Let Armory run Bitcoin Core/bitcoind in the background", then running Bitcoin Core manually before starting Armory, but the same thing happens.
I have tried "Rebuild and Rescan databases" in Armory, without luck.
Latest I renamed my ~/.armory directory to let Armory start entirely from scratch, but still the same. Here is the (new) armorylog.txt:
https://paste.ubuntu.com/25196347/