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If the issue persists, and nothing else works, be sure to report this at https://github.com/ValveSoftware/SteamOS/issues
1) Plugging into Hardwire network
2) Rebooting into "Recovery Mode" which done by Spamming the Escape key, then choosing the "Steam OS Advanced" option, and the second option there which includes (recovery mode).
3) Running "dhclient eth0" to start up networking, verified it was connecting using "ping google.com"
4) apt-get update && apt-get dist-upgrade (follow all the prompts, keeping local version of grub)
5) After everything upgraded successfully, shutdown -r now
After the reboot I verified a few times it was working by rebooting a few more times, unplugged the ethernet cable and rebooted, and now it's all working just fine! My guess is that after the first upgrade attempt when it went to complete installation after rebooting it couldn't figure out how to connect to my wireless network, which caused this infinite loop of "SteamOS is attempting to recover from a fatal error".