Comment 2 for bug 1573240

The error in your logs is:

dpkg: dependency problems prevent configuration of systemd:
 systemd depends on libsystemd0 (= 225-1ubuntu9.1); however:
  Version of libsystemd0:amd64 on system is 229-4ubuntu4.
 systemd depends on udev; however:
  Package udev is not configured yet.
 ifupdown (0.8.10ubuntu1) breaks systemd (<< 228-3~) and is unpacked but not configured.
  Version of systemd to be configured is 225-1ubuntu9.1.

dpkg: error processing package systemd (--configure):
 dependency problems - leaving unconfigured
Errors were encountered while processing:
 systemd
dpkg: regarding .../initscripts_2.88dsf-59.3ubuntu3_amd64.deb containing initscripts, pre-dependency problem:
 initscripts pre-depends on systemd (>= 228-5ubuntu3)
  systemd is unpacked, but has never been configured.

dpkg: error processing archive /var/cache/apt/archives/initscripts_2.88dsf-59.3ubuntu3_amd64.deb (--unpack):
 pre-dependency problem - not installing initscripts

First of all, you are trying to install the initscripts package from xenial-proposed, and you should not. This version of initscripts is a pending SRU that needed to be tested very specifically for upgrades. Please disable -proposed in your apt sources and try again.

That said, this appears to confirm a very serious dependency loop on upgrade. Marking this bug regression-proposed.