Thanks for your bugreport.
Could you please double check and attach any file that is not empty in
/var/log/dist-upgrade ?
** Changed in: update-manager (Ubuntu)
Status: New => Incomplete
** Changed in: update-manager (Ubuntu)
Assignee: (unassigned) => Michael Vogt (mvo)
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dist-upgrade crashes saying preparing update failed
https://bugs.launchpad.net/bugs/359007
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