Bug#763963: Systemd says Failed to create root cgroup hierarchy: Invalid argument

[Manish Mohania]

Package: systemd
Version: 208-8

When I boot my system, I see the following message:
Loading, please wait ...

When I remove the quiet keyword from the GRUB - Debian GNU/Linux menu entry
and boot the system with the following entry:

linux /boot/vmlinuz-2.6.32-5-686
root=UUID=3de041fe-155b-4329-939e-f1da57fea70f ro

then I see the following error on console:

[ 2.696080] <30> systemd[1]: systemd 208 running in system mode (+PAM
+LIBWRAP +AUDIT +SYSVINIT +LIBCRYPTSETUP +GCRYPT +ACL +XZ)

Welcome to Debian GNU/Linux jessie/sid!
[ 3.012374] <30> systemd[1]: Inserted module 'autofs4'
[ 3.038538] <30> systemd[1]: Set hostname to <debian>
[ 3.062844] <27> systemd[1]: Failed to create root cgroup hierarchy:
Invalid argument
[ 3.063076] <27> systemd[1]: failed to allocate manager object: Invalid
argument


What caused this problem:
I upgraded systemd and libpam-systemd then the above errors started coming.

apt-get update
aptitude upgrade systemd libpam-systemd

I thought that I have not taken the complete upgrade so i did the
dist-upgrade using apt-get.

apt-get update
apt-get dist-upgrade.

but these errors do not go away and hence I am filing this bug report.

I am using Debian jessie:
output of uname -a:
Linux (none) 2.6.32-5-686 #1 SMP Sun Sep 23 09:49:36 UTC 2012 i686 GNU/Linux

Currently I am using my system by dropping to shell using the below grub
menu entry:

linux /boot/vmlinuz-2.6.32-5-686
root=UUID=3de041fe-155b-4329-939e-f1da57fea70f ro init=/bin/bash
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