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v21y/GB 2.3.4 update causes apps to not be able to install/update

I recieved the OTA update for the G2x to the latest v21y firmware and Gingerbread 2.3.4 OS.  Everything seems to have gone fine, except that now in Google Play apps it gives me the following error when trying to install or update *any* app:

 

'Error downloading "xxx". There is insufficient space on the device.'

 

Of course, I have an additional 8 GB micro SD card that is almost totally empty, and the internal phone storage has 3.2 GB available.  The phone memory lists 0.94 GB available as well.

 

I followed the usual advice of clear data / clear cache for both Google Play and Download Manager.  I unmounted/mounted both phone and SD cards.  I turned off the phone, pulled the battery for a bit, took out the external SD card, put the battery back in, and booted back up.  I rebooted a bunch of times.  I put the external SD card back in.  I cleared off extra crud from phone storage via a file manager, and I cleared caches on all installed apps.

 

This has never happened before, and directly after the update it has happened 100% of the time I have tried.

 

Any ideas?  Is this happening to anyone else?

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