Hello,
This happened to me today, almost exactly...
My HP Envy worked fine when I went to sleep. When I woke up, the touch screen and USB mouse/keyboard all stopped working in Windows (touchscreen still worked fine in diagnostic tests). I investigated and found the drivers all appeared to be missing. I tried updating them or reinstalling them and restarting with no luck. Then I decided it was time to try a system restore...Blammo, now I can't get out of the boot error loop or restore the system to any working point. The same 'Spotify.exe' file is identified as the conflict that prevents the system restore from completing.
I can get into command line from the startup diagnostic screens but when I try to do anything to that Spotify.exe file it says the system cannot access the file (probably what's preventing the restore from working in the first place). Is there a way to change the permissions on this? Would that allow system restore to overwrite it?
I have also been unable to access safe mode. But, I can see that all of my files are still intact, and I can transfer them onto an external hard drive...but I'd really not like to have to buy a new computer because of this one spotify file seems to be preventing a system restore...
Any help resolving this would be greatly appreciated.