I originally discovered this issue using the ZeroShell-1.0.beta11-ALIX-CompactFlash-1GB.img.gz image on a Nokia IP130 box and reproduced using the VMWare image. If the C000 Asterisk update is installed followed by any other update the reboot process loops with several errors. Since I reproduced this using the VMWare image I do not believe this is isolated to my production environment. I have found 2 workaround solutions listed below.
If the Asterisk update is installed first and another update is installed afterward, rerun the install.sh script for the Asterisk update.
If you have a fresh beta 11 system and you plan on installing the Asterisk update. Install the Asterisk update last.