Just to add my configuration to the mix, I’m using MySQL 5.7.8 which has the same strict sql_mode rules by default.
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I finally figured the following working in my /etc/mysql/my.conf:
[mysqld] sql-mode="STRICT_TRANS_TABLES,NO_ENGINE_SUBSTITUTION"
i.e. dash, not underscore and quotes around the value.
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I have NO other my.conf files other than /etc/mysql/my.conf
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There are some extra config includes being loaded from /etc/mysql/conf.d/ but they are blank.
And that seems to work for me.