OS X hangs on boot, waiting for DSMOS...

I am on a MacBook Pro (Retina, Mid 2012) running El Capitan 10.11.1. After installing the latest updates, which include:

- Command Line Tools (OS X 10.11) for Xcode 7.2

- iTune 12.3.2

- OS X El Capitan Recovery Update 1.0

- OS X El Capital Update 10.11.2

I could no longer boot the system. It usually hangs at around 60% to 100%. Booting in verbose mode shows that one of the last messages is:

Waiting for DSMOS...

but then I never get the subsequent "DSMOS has arrived". I've tried the following to no avail:

1. Wait for hours for the system to come up

2. Boot in safe mode

3. Reset NVRAM

4. Reinstall the OS from the Recovery Tool

5. Run Apple Diagnostics (no errors reported)

The only thing that gets me out of this state is a complete restore from Time Capsule, which brings the OS back to the version prior the update. I thought it was a fluke so after recovering I ran the updates again which put me right back into the unbootable state.

I believe Apple has released a buggy driver with some of the updates above. I thought I'd post this information for other people who might have a similar problem.