I actually found out that this failure was actually due to an older installation of vmware-player. Even though I removed it at the time, vmware-player left /etc/init.d/vmware-player to start on boot up :s.... and as a result, messed everything up.
To sort this out, you need to remove vmware-player service simply run: sudo update-rc.d -f vmware-player remove
Don't forget to remove /etc/vmware/not_configured, if it is still there, before you reboot.
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