I had exactly the same problem.
The only way managed to get the system past kernel update is to manually edit 
this file:
/etc/kernel/postinst.d/zz-update-grub 
And modify the start of the script so it immediately exit with successful 
state=0:

#! /bin/sh
exit 0
[...] etc...

This will allow the installation of the new kernel to proceed. You will
have to edit that file again each time you want to upgrade the kernel.

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https://bugs.launchpad.net/bugs/990397

Title:
  Multiples packages fails to install when using NFS root

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