I also wasn't able to upgrade to Windows 8.1 on my new Dell XPS12 (got it in late October).
After reading your comment, I decided to try to uninstalled Displaylink drivers (removed Core Software and Graphics) and try my luck.... and bingo, it worked.
After the upgrade to Windows 8.1, I reinstalled DisplayLink (v7.4) and will need to update other glitchy drivers (touchpad for sure, and maybe others as they appear).
Thank you for you post with the suggestion of removing DisplayLink.
Wow, that is sweet that it worked. I just tried it on mine and it didn't. However, I am thinking that I might try a few of the other troubleshooting suggestions like wsreset, etc.
Did you have the latest Windows 8 drivers from DELL or had you started to put on some of the Windows 8.1 drivers from DELLs site?
I like a lot of Windows 8/8.1 but I really don't like the dumbing down of the F8(Safe Mode) system or the obscuring of the details of the patch install. I really which that Microsoft would give techs a complicated key sequence to press so we could watch what
was going on behind the scenes. It might give us a chance to see what was failing and concentrate on that.
At least the rollback seems to work. 8^D I'll post back if I get it to work.