Deploying Azure Web Role Failing. value cannot be null

I have a number of web applications live in azure, all web roles.

All have been published many times before, but when I try to publish any of them now, I am getting a failure. The feedback is:

Value cannot be null, Parameter name: s.

I think this may be related to Microsoft's update KB3211320, as everything was OK before this update. Unfortunately, it cannot be uninstalled and system restore is failing.

Azure WebRole Deployment Failure:

I opened a ticked with Microsoft, and they replied with this:

It has already been identified as backend issue and now I am working with Product Team with highest severity to fix it.

They provided a workaround, too:

As a temporary workaround, you can disable Diagnostic first and redeploy again.

I personally am not ok with disabling diagnostics and will publish with packages until it is resolved, but you might find it useful if you can't access the portal with enough rights to do a manual update.

Edit: They rolled back the changes, now it works as before.