If you're only distributing internally then you're fine, but that's because it's explicitly called out as permitted - the image is still associated with the trademarks.
You're confusing "distributing a copy of Ubuntu to run on a server you own" with "distributing a copy of Ubuntu for the public to download." The former is not a trademark violation. Nor does it violate the terms of the Canonical IP policy quoted above.
No, I said that the former was explicitly permitted. Whether it violates the section of the policy you quoted is therefore irrelevant. But you appear to be asserting that the phrase "associate it with the Trademarks" has something to do with trademark law, which doesn't seem clear.