The problem can be found in the output you pasted to the description.
Found memtest86+ image: /boot/memtest86+.bin
/etc/grub.d/16_custom_proxy: 5: /etc/grub.d/16_custom_proxy: Syntax error: "("
unexpected
run-parts: /etc/kernel/postinst.d/zz-update-grub exited with return code 2
Failed to process /etc/kernel/postinst.d at
/var/lib/dpkg/info/linux-image-3.5.0-37-generic.postinst line 1010.
So the file /etc/grub.d/16_custom_proxy has a syntax error in it. Given
that is is not a file provided by Ubuntu this is something you'll need
to sort out yourself.
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https://bugs.launchpad.net/bugs/1217148
Title:
package grub-pc 1.99-21ubuntu3.10 failed to install/upgrade:
ErrorMessage: subprocess installed post-installation script returned
error exit status 2
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