Briefly, the problem is almost certainly that grub-pc's debconf
configuration was misconfigured such that it failed to actually install
a new version of the boot loader such that the VM would boot from it,
but it upgraded the configuration file anyway.  There is no guarantee
that new configuration files will be compatible with old boot loaders;
if the boot loader isn't properly installed on upgrade, that's an
invalid state.

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https://bugs.launchpad.net/bugs/949992

Title:
  Upgrade from Lucid to Precise results in broken grub configuration

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