I'm here to report a similar issue.  But what distinguishes my case from
all of you is that I formatted 16.04 straight from live media. I never
upgraded from 14.04.

I'm getting this:
$ sudo apt-get upgrade    
Reading package lists... Done
Building dependency tree       
Reading state information... Done
Calculating upgrade... Done
The following packages will be REMOVED:
  linux-image-4.4.0-22-generic linux-image-extra-4.4.0-22-generic
0 upgraded, 0 newly installed, 2 to remove and 0 not upgraded.
6 not fully installed or removed.
After this operation, 217 MB disk space will be freed.
Do you want to continue? [Y/n] 
(Reading database ... 406405 files and directories currently installed.)
Removing linux-image-extra-4.4.0-22-generic (4.4.0-22.40) ...
depmod: FATAL: could not load /boot/System.map-4.4.0-22-generic: No such file 
or directory
run-parts: executing /etc/kernel/postinst.d/apt-auto-removal 4.4.0-22-generic 
/boot/vmlinuz-4.4.0-22-generic
run-parts: executing /etc/kernel/postinst.d/dkms 4.4.0-22-generic 
/boot/vmlinuz-4.4.0-22-generic
Error! Your kernel headers for kernel 4.4.0-22-generic cannot be found.
Please install the linux-headers-4.4.0-22-generic package,
or use the --kernelsourcedir option to tell DKMS where it's located
Error! Your kernel headers for kernel 4.4.0-22-generic cannot be found.
Please install the linux-headers-4.4.0-22-generic package,
or use the --kernelsourcedir option to tell DKMS where it's located
Error! Your kernel headers for kernel 4.4.0-22-generic cannot be found.
Please install the linux-headers-4.4.0-22-generic package,
or use the --kernelsourcedir option to tell DKMS where it's located
run-parts: executing /etc/kernel/postinst.d/initramfs-tools 4.4.0-22-generic 
/boot/vmlinuz-4.4.0-22-generic
update-initramfs: Generating /boot/initrd.img-4.4.0-22-generic
WARNING: missing /lib/modules/4.4.0-22-generic
Ensure all necessary drivers are built into the linux image!
depmod: ERROR: could not open directory /lib/modules/4.4.0-22-generic: No such 
file or directory
depmod: FATAL: could not search modules: No such file or directory
depmod: WARNING: could not open 
/var/tmp/mkinitramfs_P309qI/lib/modules/4.4.0-22-generic/modules.order: No such 
file or directory
depmod: WARNING: could not open 
/var/tmp/mkinitramfs_P309qI/lib/modules/4.4.0-22-generic/modules.builtin: No 
such file or directory
run-parts: executing /etc/kernel/postinst.d/pm-utils 4.4.0-22-generic 
/boot/vmlinuz-4.4.0-22-generic
run-parts: executing /etc/kernel/postinst.d/unattended-upgrades 
4.4.0-22-generic /boot/vmlinuz-4.4.0-22-generic
run-parts: executing /etc/kernel/postinst.d/update-notifier 4.4.0-22-generic 
/boot/vmlinuz-4.4.0-22-generic
run-parts: executing /etc/kernel/postinst.d/zz-update-grub 4.4.0-22-generic 
/boot/vmlinuz-4.4.0-22-generic
/usr/sbin/grub-mkconfig: 26: /etc/default/grub: Syntax error: newline unexpected
run-parts: /etc/kernel/postinst.d/zz-update-grub exited with return code 2
dpkg: error processing package linux-image-extra-4.4.0-22-generic (--remove):
 subprocess installed post-removal script returned error exit status 1
Removing linux-image-4.4.0-22-generic (4.4.0-22.40) ...
Examining /etc/kernel/postrm.d .
run-parts: executing /etc/kernel/postrm.d/initramfs-tools 4.4.0-22-generic 
/boot/vmlinuz-4.4.0-22-generic
update-initramfs: Deleting /boot/initrd.img-4.4.0-22-generic
run-parts: executing /etc/kernel/postrm.d/zz-update-grub 4.4.0-22-generic 
/boot/vmlinuz-4.4.0-22-generic
/usr/sbin/grub-mkconfig: 26: /etc/default/grub: Syntax error: newline unexpected
run-parts: /etc/kernel/postrm.d/zz-update-grub exited with return code 2
Failed to process /etc/kernel/postrm.d at 
/var/lib/dpkg/info/linux-image-4.4.0-22-generic.postrm line 328.
dpkg: error processing package linux-image-4.4.0-22-generic (--remove):
 subprocess installed post-removal script returned error exit status 1
Errors were encountered while processing:
 linux-image-extra-4.4.0-22-generic
 linux-image-4.4.0-22-generic
E: Sub-process /usr/bin/dpkg returned an error code (1)

My update-initramfs works just fine:

$ sudo update-initramfs -u
update-initramfs: Generating /boot/initrd.img-4.4.0-28-generic
$

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https://bugs.launchpad.net/bugs/1574163

Title:
  systemd[1]: Failed to start Load Kernel Modules.

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