I also experienced this bug today. What seems to have happened is that
upstart init filled all of the memory on my machine while libjson-c2 was
updating, leading to oom-killer killing everything. The kernel panic
here would happen if oom-killer tries to act on init. After a reboot my
machine managed to upgrade fully before crashing due to running out of
memory again.

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https://bugs.launchpad.net/bugs/1878723

Title:
  Kernel panic when used with upstart after 0.11-4ubuntu2.1 update

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