The above error doesn't appear to have anything to do with your DAEMON
being set to gibberish but, rather, squid3 being removed (along with its
init script) before squid.postinst tries to stop it.  This is probably
due to the Conflicts that should be a Breaks.  Experimenting locally.

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https://bugs.launchpad.net/bugs/1473691

Title:
  [FFe] squid: Update to latest upstream release (3.5)

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