The error in your log is:
/etc/default/grub: line 35: Section: command not found
run-parts: /etc/kernel/postinst.d/zz-update-grub exited with return code 127
This indicates that you have manually edited this config file, rendering
it invalid. This is not a bug in Ubuntu, you will need to correct this
file yourself.
** Changed in: grub (Ubuntu)
Status: New => Invalid
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https://bugs.launchpad.net/bugs/1591682
Title:
package linux-image-4.2.0-38-generic 4.2.0-38.45~14.04.1 failed to
install/upgrade: run-parts: /etc/kernel/postinst.d/zz-update-grub
exited with return code 127
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