I don't understand it, but might be unrelated to your problem.
The error message "error in service module" is from PAM.
Boot your system to a single-user mode or maintenance mode or rescue mode.
Do you get a grub screen during booting? Hit cursor-up and cursor-down keys and enter the maintenance mode.
There you should get a root (#) prompt.
Hmm, this file is consulted by PAM.
If missing, PAM should not crash, but give error message and continue with the current/inherited limits.
I suspect a bug.