PROCESS1_INITIALIZATION_FAILED bluescreen error after installing Windows Update KB3105208

Question:

After installing Windows Update KB3105208 on Insider Preview, the system restarts and then fails with a bluescreen error:

PROCESS1_INITIALIZATION_FAILED

Automatic Repair is unable to fix the issue, and System Restore hangs after restarting.

How do I restore my system?

Our apologies to everyone for the impact this update has had for our Insiders.  The Windows Servicing team has pulled this update to prevent further Insiders from experiencing this issue. 

For those of you who are experiencing this error, the steps for restoring your system depends on whether or not you tried to run System Restore after the bluescreen error occurred.

If you have NOT tried to run System Restore:

If you have tried to run System Restore, you will instead need to try these steps to repair your system: