SOLUTION:

I noticed that I had the NVIDIA proprietary version of driver 595. I
switched top 595-open using Driver Manager and rebooted into
7.0.0-38-generic. I was able to boot with no problems and am now using
7.0.0-38-generic. Apparently the problem was caused by an
incompatibility between the proprietary 595 and -38.

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https://bugs.launchpad.net/bugs/2169427

Title:
  Regression: 7.0.0-38-generic hangs during boot when NVIDIA driver
  loads; boots successfully with NVIDIA modules blacklisted; 7.0.0-34
  works

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