This is slightly different to the Installation Failed on a new install in that the kexts are already authorised but still won't load.
I ran into the "Installation failed" and "failed to load kernel driver" problems after updating from 6.10 to 6.16 last night.
Attempting to revert to 6.10 didn't solve the issue.
After a lot of digging I finally found a solution in this Github issue 2373 for Karabiner-Elements.
The forum won't let me post a link so you'll have to google for it.
The problem is caused by incorrect permissions or flags on the directories under /private/var/db/ used for staging kexts.
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/private/var/db/KernelExtensionManagement
/private/var/db/KernelExtensionManagement/Staging
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ls -lO /private/var/db/
drwxr-xr-x@ 3 root wheel restricted 96 26 Sep 11:32 KernelExtensionManagement
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ls -lO /private/var/db/KernelExtensionManagement
total 0
drwxr-xr-x 2 root wheel restricted 64 30 Oct 10:59 Staging
To fix the problem you need to boot into recovery then set the correct permissions and flags as required.
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chmod 755 /Volumes/<your boot drive>/private/var/db/KernelExtensionManagement
chmod 755 /Volumes/<your boot drive>/private/var/db/KernelExtensionManagement/Staging
chflags restricted /Volumes/<your boot drive>/private/var/db/KernelExtensionManagement
chflags restricted /Volumes/<your boot drive>/private/var/db/KernelExtensionManagement/Staging