Error: file '/boot/initramfs-linux.img' not found

You could try to repair the update in terminal in a live session. Mount your root and do a arch-chroot:

mount /dev/sdXY /mnt
arch-chroot /mnt

where XY is your root partition. If you have additional partitions (e.g. separate boot or an efi partition) mount them accordingly before the arch-chroot:

mkdir -p /mnt/boot/efi
mount /dev/sdXZ /mnt/boot
mount /dev/sdXA /mnt/boot/efi

Then check if the update was ok by

pacman -Syyu

If this was ok then do a

mkinitcpio -p linux

and

grub-mkconfig -o /boot/grub/grub.cfg

Then cross fingers and reboot…

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