Sounds like this might be a "chicken-and-egg" issue where Upstart wants
a pty, but pty support isn't yet available (/dev/pts not mounted) as the
mountall job hasn't yet run. This being a side-effect of having no
initramfs since /dev/pts is normally mounted from there.

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https://bugs.launchpad.net/bugs/936667

Title:
  init(4): no available ptys stops boot

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