The error in your log shows:

insserv: warning: script 'S99startEverything' missing LSB tags and overrides
insserv: warning: script 'startEverything.sh' missing LSB tags and overrides
[...]
insserv: There is a loop between service startEverything and udev if started
insserv:  loop involving service udev at depth 1
insserv: There is a loop at service startEverything if started
insserv: Starting startEverything.sh depends on grub-common and therefore on 
system facility `$all' which can not be true!
[...]

You appear to have a local init script, /etc/init.d/startEverything.sh,
which is not a valid LSB init script and therefore causes problems on
upgrade when trying to calculate init script dependencies.

It's a problem that this is treated as a fatal error in the upgrader.
Nevertheless, this script probably isn't going to do what you want it to
post-upgrade due to the lack of correct init script dependency
declarations.  You will want to either adjust this init script to
contain a proper LSB init header, or remove it from your system, and try
the upgrade again with 'sudo apt-get -f install && sudo apt-get dist-
upgrade'.

-- 
You received this bug notification because you are a member of Ubuntu
Touch seeded packages, which is subscribed to sysvinit in Ubuntu.
https://bugs.launchpad.net/bugs/1792752

Title:
  do-release-upgrade failed on ec2

Status in sysvinit package in Ubuntu:
  New

Bug description:
  I tried upgrading my ec2 instance from 14.04 using sudo do-release-
  upgrade

  I get this error

  ProblemType: Package
  DistroRelease: Ubuntu 16.04
  Package: initscripts 2.88dsf-59.3ubuntu2
  ProcVersionSignature: Ubuntu 3.13.0-158.208-generic 3.13.11-ckt39
  Uname: Linux 3.13.0-158-generic x86_64
  ApportVersion: 2.20.1-0ubuntu2.18
  Architecture: amd64
  Date: Sat Sep 15 22:25:52 2018
  Ec2AMI: ami-066736b10f23b32a3
  Ec2AMIManifest: (unknown)
  Ec2AvailabilityZone: ap-south-1a
  Ec2InstanceType: t2.micro
  Ec2Kernel: unavailable
  Ec2Ramdisk: unavailable
  ErrorMessage: subprocess installed post-installation script returned error 
exit status 1
  RelatedPackageVersions:
   dpkg 1.18.4ubuntu1.4
   apt  1.2.27
  SourcePackage: sysvinit
  Title: package initscripts 2.88dsf-59.3ubuntu2 failed to install/upgrade: 
subprocess installed post-installation script returned error exit status 1
  UpgradeStatus: Upgraded to xenial on 2018-09-15 (0 days ago)
  mtime.conffile..etc.default.rcS: 2015-03-25T11:52:34.180359

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