I did a little bit of more triaging:

Staying on my
    Linux acer07 4.8.0-21-generic #23-Ubuntu SMP Tue Oct 4 18:27:25 UTC 2016 
x86_64 x86_64 x86_64 GNU/Linux
and only upgrading from "nvidia-304 304.131-0ubuntu5" to "nvidia-304 
304.132-0ubuntu1"
brings up this problem.

On the other hand, staying on "nvidia-304 304.131-0ubuntu5" and doing a
complete "apt-get dist-upgrade" otherwise, results in a completely
functioning system.

So looks like this problem is more connected with nvidia-304 versions
than kernel versions.

My workaround is (thanks to BTRFS allowing me to boot into various
snapshots and having the earlier driver version available):

$ cat /etc/apt/preferences.d/nvidia-304_mtrr-prob.pref 
Package: nvidia-304
Pin: version 304.132-0ubuntu1
Pin-Priority: -1

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https://bugs.launchpad.net/bugs/1634802

Title:
  Could not insert module

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