FWIW, on another system I updated now /etc/environment reads (1 line)
PATH="/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin:/usr/games"
as it should. There, updating went smoothly, too.

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https://bugs.launchpad.net/bugs/876434

Title:
  lightdm doesn't find unity-greeter

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