It turns out that the bug is due to the Xen kernel.

Basically you need to set "hwcap 1 nosegneg" in
/etc/ld.so.conf.d/xen.conf

As per https://kerneltrap.org/mailarchive/linux-
kernel/2007/11/28/455534/thread

I am only recording this here because I just spent a frustrating number
of hours when hitting the same bug -- and perhaps this can help someone
else out in the same situation.

Additionally you probably want to also upgrade the kernel as well.

-- 
update-rc.d crashed with SIGSEGV in readdir64_r()
https://bugs.launchpad.net/bugs/132423
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