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Yes backup and re-install but make sure you are using zfs when re-installing.

During the re-install I use ZFS this time around instead of UFS.  Not sure if that was the cause or not.  I have a N200 Intel system. 

No this isn't the norm.  I have used OPNsense for many years without major issues.  There is something weird with the upgrade this time around.  Hopefully they can figure out what went wrong and caused a lot of failed upgrades this time around.  I don't have anything special on my install.  For the most part very vanilla with only dhcp reservations.  I had to install 25.7 fresh and upgrade to 25.7.1 and then restore my config.  I was lucky my system reverted back to allow me to make a backup which you should do before any upgrade.

I had same problem.  I ended up doing fresh install of 25.7 and upgraded to 25.7.1 and then restored my backup. 

I did a fresh install with 25.7 and upgraded to 25.7.1.  Then restored my backup.  Seems to be working now.  Also used ZFS and it could just be me but seems quicker.  Hopefully it isn't a bad hard drive that actually caused this.

I ran into this issue as well.  System looked to reboot during the middle of the update. I did run the command Franco provided but it told me the file didn't exist.  Now if I try to run the update again I get this output and its telling me there is no update available.

***GOT REQUEST TO CHECK FOR UPDATES***
Currently running OPNsense 25.7 (amd64) at Thu Jul 31 13:49:26 CDT 2025
Fetching changelog information, please wait... done
Updating OPNsense repository catalogue...
Waiting for another process to update repository OPNsense
All repositories are up to date.
Checking integrity... done (0 conflicting)
Your packages are up to date.
Checking for upgrades (12 candidates): .......... done
Processing candidates (12 candidates): .......... done
Checking integrity...Assertion failed: (strcmp(uid, p->uid) != 0), function pkg_conflicts_check_local_path, file pkg_jobs_conflicts.c, line 315.
Child process pid=18275 terminated abnormally: Abort trap
***DONE***

I had the same problem after upgrading 25.1.11.  So I thought it was the upgrade but sounds like the weird internet behavior might have been outside source and not the upgrade I did.

I believe this is the same issue in other posts in this forum.   You must have had zenarmor installed at some point.  I had to fight with it re-installing it and then removing it a couple of times to finally clear it up.