Thanks for your bugreport.
Please attach the files in /var/log/dist-upgrade/* so that we can
diagnose what exactly its doing. But in general it tries to install
ubuntu-desktop (or kubuntu-desktop depending on your flavor) and
otherwise performs a normal dist-upgrade.
** Changed in: update-manager (Ubuntu)
Status: New => Incomplete
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update-manager makes strange changes to installed software
https://bugs.launchpad.net/bugs/364301
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