UPDATE:
======

I have found this is due to bug(s) in the Rust Coreutils (specifically
md5sum), I believe.

General Info on change from GNU CoreUtils to Rust CoreUtils in this article:
https://discourse.ubuntu.com/t/ubuntu-25-10-foundations-edition-what-s-coming-and-what-s-next/68147

Info on problems with Rust Coreutils (uutils):
https://www.reddit.com/r/linux/comments/1nr1bas/ubuntu_2510s_move_to_rust_coreutils_is_causing/

I was able to fix the issue, by removing the Rust CoreUtils and installing the 
GNU CoreUtils:
sudo apt install --allow-remove-essential coreutils-from-gnu 
coreutils-from-uutils-

Then rebooted the VM, and selected Devices > Insert Guest Additions CD Image, 
then opened a Terminal at the CD path, then ran:
sudo sh ./VBoxLinuxAdditions.run
Then to allow access to shared VirtualBox folder:
sudo usermod -a -G vboxsf $USER

And this installed the VirtualBox Guest Additions just fine!

So the Main Bug is with md5sum in Rust CoreUtils (uutils) - see:
https://bugs.launchpad.net/ubuntu-release-notes/+bug/2125535

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https://bugs.launchpad.net/bugs/2123903

Title:
  Virtualbox Guest Addition update fails in 25.10

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