This bug was fixed in the package debian-installer-utils - 1.88ubuntu1

---------------
debian-installer-utils (1.88ubuntu1) precise; urgency=low

  * Resynchronise with Debian (diversion change fixes LP: #900526).
    Remaining changes:
    - user-params: Don't propagate vga=*, break=*, *-ubiquity, or
      noninteractive to installed system.
    - Use /proc/self/fd/4 rather than /dev/fd/4 in fetch-url-methods/http;
      the latter doesn't seem to exist in d-i.
    - list-devices: new "mmc-partition" type for detecting partitions on MMC
      devices.
    - Don't include the battery subsystem on calls to udevadm trigger.

debian-installer-utils (1.88) unstable; urgency=low

  [ Colin Watson ]
  * chroot_setup.sh: Divert start-stop-daemon and initctl rather than simply
    moving them aside (closes: #654580).

  [ Updated translations ]
  * Icelandic (is.po) by Sveinn í Felli
  * Kannada (kn.po) by Prabodh C P
 -- Colin Watson <[email protected]>   Wed, 04 Jan 2012 14:36:47 +0000

** Changed in: debian-installer-utils (Ubuntu Precise)
       Status: Triaged => Fix Released

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https://bugs.launchpad.net/bugs/900526

Title:
  d-i fails to divert initctl when upgrading packages during install

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