You have removed the ending backtick from /etc/default/grub on the line:
GRUB_DISTRIBUTOR=`lsb_release -i -s 2> /dev/null || echo Debian
You need to put it back.
** Changed in: grub2 (Ubuntu)
Status: New => Invalid
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https://bugs.launchpad.net/bugs/1531250
Title:
package grub-pc 2.02~beta2-9ubuntu1.7 failed to install/upgrade:
subprocess installed post-installation script returned error exit
status 127
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