This has to be a vserver ufs bug, the shell that's failing is:
rm -f /lib/udev/devices/ppp
mknod -m 600 /lib/udev/devices/ppp c 108 0
It must be refusing to make certain device nodes
** Changed in: vserver (Ubuntu)
Sourcepackagename: udev => vserver
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udev fails to install in a vserver due to /lib/udev/devices/ppp - operation not
permitted
https://bugs.launchpad.net/bugs/144685
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