HI,
I contacted apple support and they advised the following which worked for me. I didn't need to go the sierra option, but if the reinstall OS X doesn't work, then sure try the last option.
Steps
Let’s restart your Mac into OS X Recovery by restarting and pressing Command-R upon restart and holding for one minute. From there, let’s click on Disk Utility > click your Macintosh HD > click First Aid at the top.
This will ensure there are no underlying issues with the hard drive itself.
From there, if there are any hard drive issues, that would be an indication of a hardware issue. However, if there aren’t, we’ll want to close out of Disk Utility while still in recovery mode, then choose Reinstall OS X. ( its the second option) This will reinstall the current version of OS X and only reinstall system files without erasing any user data, and can often times fix issues like this where it’s returning a trace file error. note: if you are not connected to ethernet, you will need to connect to wifi by clicking on the wifi icon in the top right of the recovery screen.
Another option we can use to get this resolved in the event reinstalling OS X doesn’t work is upgrading to Sierra and then attempting reinstalling after.
Cheers SoloMeter