package transmission-daemon 2.51-0ubuntu1.1 failed to install/upgrade: subprocess installed post-installation script returned error exit status 255

/var/log/syslog:

Sep 29 09:22:09 htpc transmission-daemon: transmission-daemon Error loading config file -- exiting. (daemon.c:462)

No changes made to any configuration files.

root@htpc:/etc/transmission-daemon# ls -larth settings.json
-rwsr-x--- 1 debian-transmission debian-transmission 2.3K Aug 12 16:01 settings.json

Status changed to 'Confirmed' because the bug affects multiple users.

I experienced the same issue.
Prior the upgrade I had changed the user in /etc/init.d/transmission-daemon to my username.
To resolve the issue, I restored the original user "debian-transmission" and then the upgrade process went ok.

I'd accept that as a workaround. However, previous versions upgraded happily, so ...

Is there any progress on this bug? If not, anything I can do to help move this one along?

I'm using transmission-d 2.76-0 and have the same exact problem.... is this "fixable"? Is there any workaround?

Thanks

Please note that changing the user makes no difference to me, in fact mine is "debain-trasmission"

sudo apt-get install -f
Reading package lists... Done
Building dependency tree
Reading state information... Done
0 upgraded, 0 newly installed, 0 to remove and 5 not upgraded.
1 not fully installed or removed.
After this operation, 0 B of additional disk space will be used.
Setting up transmission-daemon (2.76-0ubuntu0.12.10.1) ...
 * Starting bittorrent daemon transmission-daemon /usr/bin/transmission-daemon already running.
invoke-rc.d: initscript transmission-daemon, action "start" failed.
dpkg: error processing transmission-daemon (--configure):
 subprocess installed post-installation script returned error exit status 1
Errors were encountered while processing:
 transmission-daemon
E: Sub-process /usr/bin/dpkg returned an error code (1)

I also noticed this:
 * Restarting bittorrent daemon transmission-daemon [18:42:03.798] Couldn't read "/home/miguelc/.config/user-dirs.dirs": Permission denied

Which makes no sense and nothing in the config file points to miguelc "user" not even the download "dirs"

The workaround I found was to edit the configuration file of transmission-daemon

sudo vim /etc/default/transmission-daemon

 setting
ENABLE_DAEMON=1
instead of
ENABLE_DAEMON=0

upgrading the package and then changing the value of ENABLE_DAEMON again.

This still happens with

transmission-daemon/trusty-updates,trusty-security,now 2.82-1.1ubuntu3.1 amd64

When ENABLE_DAEMON is 0 in /etc/default, the post-install script tries to restart the daemon but fails, because the upstart job return value is not 0 if daemon is disabled.

+1 for what @saviq has mentioned in #10 - I see exactly the same behaviour. ENABLE_DAEMON = 0 causes upgrade to fail.