I confirm this bug too.
The problem is with GS failing on some EPS file in my case.
Using the 
sudo update-alternatives --config gs
as proposed by Commodore64 solved the problem.
The package having problem is gs-esp.
Both gs-gpl and gs-apfl are fine with the files.

This is a major issue for anyone working with latex and dvi.

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MAJOR problem with new ubuntu and ghostscript
https://bugs.launchpad.net/bugs/110765
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