Thanks for your bugreport. This sounds like you don't have python-vte installed. Could you please check that and let me know if my assumption is correct?
Thanks,
michael
** Changed in: update-manager (Ubuntu)
Status: Unconfirmed => Needs Info
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update-manager broke when I try to upgrade Ubuntu from 6.06 to 6.10
https://launchpad.net/bugs/63453
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