I faced this when upgrading Ubuntu Desktop from 13.10 to 14.04 (via
update-manager).

Following workaround worked fine for me:
I killed the update-grub process. That resumed the installer and it finally 
managed to complete successfully.
I also did a manual run of `update-grub` which succeeded without any freezing 
or other issues.

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https://bugs.launchpad.net/bugs/1285312

Title:
  Setting up mdadm (3.2.5-5ubuntu3) freezes at Found kernel: when
  upgrading from Saucy to Trusty

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