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I've upgraded from El Capitan GM to Release today.

After the installer app has moved the install files, the mac tried to reboot but the screen stayed black. I shut it off using the power button and restarted it getting kernel panics every time:

Process 1 exec of /sbin/launchd failed, errno2"@/Library/Caches/com.apple.xbs/Sources/xnu/xnu"

I tried booting in safe mode without any luck.

So I thought that this could have happened because of any faulty kexts. I booted in Recovery mode, used Disk utility to unlock my Macintosh HD, and navigated with the finder to "/Volumes/Macintosh HD/".

The strange thing is that there is no Library or System folder. I can only find these folders under /Volumes/Macintosh HD/Recovered Items/.

So I followed some advices from Apple support forums and deleted the folder /Volumes/Macintosh HD/Recovered Items/Library/Application Support/Virtual Box/". I also moved the kext file from Little Snitch to a newly created folder "Unsupported" to ensure that LS is not the case of the problem.

But nothing helped. Still getting the same kernel panic. What can I do?

1

Same here, booted into recovery and back to yosemite

cmd-shift-r keys down while booting

I guess 3 of 4 updates have failed for me last few years, getting tired of osx OS updates. Usually installs after a few attempts with startup utilities.

Better make a time machine backup before you try installation.

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