Make sure that you have enough disk space where home assistant is installed. This error has happened to me when there was not enough disk space. To check on Raspbian type df -Bm for example.
I was able to resolve the colorlog problem with sudo pip3 install colorlog as the user “pi”. Did the sudo chown homeassistant:homeassistant -R /srv/homeassistant as well…Now everything fine again ouff!
Good job!Thanks a lot!
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May not be 100% related, but those going through upgrade process, at the end I wanted to start home assistant again, and was met with a privileges issue. I then noticed that I was logged in as home assistant and not pi.
I typed exit, it dropped me back to console with user being pi, and upgrade was successful,
I restarted using systemctl command and it was working again.