To those who are affected, are you using grub1 or grub2?
Given the output above "found: /boot/grub/menu.lst" I'd guess grub1, not grub2. 
Thus it's wrong for mdadm to call `update-grub` command, as that's not needed.

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https://bugs.launchpad.net/bugs/1285312

Title:
  Setting up mdadm (3.2.5-5ubuntu3) freezes at Found kernel: when
  upgrading from Saucy to Trusty

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