just to be clear libfuse2 was one of the updated packages

here's fragment of /var/log/apt/term.log

Configuring libfuse2 (2.8.4-1ubuntu1.3) ...


Configuring fuse-utils (2.8.4-1ubuntu1.3) ...
...
Configuring linux-image-generic (2.6.35.27.35) ...

Configuring linux-generic (2.6.35.27.35) ...

Configuring linux-headers-2.6.35-27 (2.6.35-27.48) ...

Configuring linux-headers-2.6.35-27-generic (2.6.35-27.48) ...

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https://bugs.launchpad.net/bugs/727220

Title:
  Command "fuse" returned error 1 (with TrueCrypt)

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