upgrades unsandboxed-permission denied

The message that you see is just a warning and does not block installation of software or anything else. This is just a notice that a certain package download is not done as a restricted user, but as root (but it is done).
I do not understand why this should make your machine "nearly useless".

There is Bug #1522675 covering this message.

Every package upgrade gives me a version of the above warning. This machine has MULTIPLE daily system crashes and i do not believe the upgrades are installed/working properly. I have been using Linux for 10 years now and have never had this problem and nobody has answers or a fix for this problem. IF upgrades are loading properly then WHY all the system crashes???

For a verification whether update management is working properly, please provide the output that you receive for the following commands (to be executed in a terminal window):

uname -a
lsb_release -crid
sudo dpkg --audit
sudo apt-get update
sudo apt-get dist-upgrade

uname -a 4.10.o-37-generic#41ubuntuSMP Fri Oct6:37UTC2017 x86_64X86_64x86_64x86_64GNU/Linux
lsb_release -crid ubuntu 17.04 zesty

The other 3 would not enter my system password. I upgraded from 16.04 but i had a log in loop error that i could not get out of so i just upgraded. It also would not input my password when i had the log in loop error so i never fixed it first.

1. There is no need to retype anything, because there is the possibility to use copy and paste.

2. What do you mean by "The other 3 would not enter my system password"?
You have to be aware that you do not get any feedback (no echo, not even '*' placeholders) when you enter the password on the "sudo password" request. Just type your password and press the "enter" key.

I entered password and hit enter and it came back asking for my password. It did NOTHING but repeatedly ask for my password. I could get info from the first 2 questions you posted above but the other 3 would not give any info because it repeatedly asked for my password.

Being able to execute administrative tasks is crucial.
You have to find out why entering the password at the "[sudo] password for username" does not work.

1. Do you know the password for your own user ID (does it work at the login screen)?
2. If you try typing it at the command prompt, is it correctly shown (to rule out wrong keyboard settings)?

PW works everywhere but terminal when terminal asks. Keyboard is working/synced properly. Everything worked fine before the log in loop error and upgrade to 17.04. 1 of my other PC's with 17.04 crashed and i can't even wipe the HDD. It had similar issues like i am having with this PC. I am ready to smash both HDD's and buy new ones and go back to 16.04.

Why doesn't Terminal accept my password?

Did the log in loop error cause this?

What king of bug is in 17.04 that caused this?

How do i find out what's going on without having to use a password in terminal?

Both PC's are only 1.5 years old. Asus Maximus Vlll Hero's and Intel K6600 chips.

I have no explanation that the password would work everywhere, but not when asked in a sudo command.

Can you change the password with the "passwd" command and try using it, e.g. with the command "sudo id"?

Last night i upgraded to 17.10 and this morning 10-21-2017 i got hit with this error twice.

Showed up after login

ProblemType: Crash
DistroRelease: Ubuntu 17.10
Package: udisks2 2.6.5-2ubuntu1
ProcVersionSignature: Ubuntu 4.11.0-10.15-generic 4.11.8
Uname: Linux 4.11.0-10-generic x86_64
NonfreeKernelModules: nvidia_uvm nvidia_drm nvidia_modeset nvidia
ApportVersion: 2.20.6-0ubuntu4
Architecture: amd64
Date: Sun Jul 30 00:35:31 2017
ExecutablePath: /usr/lib/udisks2/udisksd
InstallationDate: Installed on 2017-06-22 (37 days ago)
InstallationMedia: Ubuntu-GNOME 17.10 "Artful Aardvark" - Alpha amd64 (20170622)
MachineType: To Be Filled By O.E.M. To Be Filled By O.E.M.
ProcCmdline: /usr/lib/udisks2/udisksd
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-4.11.0-10-generic.efi.signed root=UUID=44b31662-d2ab-443b-9546-86d022d8de0d ro quiet splash vt.handoff=7
SegvAnalysis:
 Segfault happened at: 0x7f4900fb5c65 <g_mutex_lock+5>: lock xadd %eax,(%rdi)
 PC (0x7f4900fb5c65) ok
 source "%eax" ok
 destination "(%rdi)" (0x3a9d80e262617474) not located in a known VMA region (needed writable region)!
SegvReason: writing unknown VMA
Signal: 11
SourcePackage: udisks2
StacktraceTop:
 g_mutex_lock () from /lib/x86_64-linux-gnu/libglib-2.0.so.0
 ?? () from /lib/x86_64-linux-gnu/libglib-2.0.so.0
 main ()
Title: udisksd crashed with SIGSEGV in g_mutex_lock()
UpgradeStatus: No upgrade log present (probably fresh install)
UserGroups:

dmi.bios.date: 04/12/2016
dmi.bios.vendor: American Megatrends Inc.
dmi.bios.version: P3.40
dmi.board.name: Z87 Extreme4
dmi.board.vendor: ASRock
dmi.chassis.asset.tag: To Be Filled By O.E.M.
dmi.chassis.type: 3
dmi.chassis.vendor: To Be Filled By O.E.M.
dmi.chassis.version: To Be Filled By O.E.M.
dmi.modalias: dmi:bvnAmericanMegatrendsInc.:bvrP3.40:bd04/12/2016:svnToBeFilledByO.E.M.:pnToBeFilledByO.E.M.:pvrToBeFilledByO.E.M.:rvnASRock:rnZ87Extreme4:rvr:cvnToBeFilledByO.E.M.:ct3:cvrToBeFilledByO.E.M.:
dmi.product.name: To Be Filled By O.E.M.
dmi.product.version: To Be Filled By O.E.M.
dmi.sys.vendor: To Be Filled By O.E.M.

This seems to be a known problem Bug #1707451
I assume that the developers are already working on it.