Recovery logs are present at https://pantheon.corp.google.com/storage/browser/chromiumos-test-logs/bugfiles/cros/731787/recovery_logs/?debugUI=CLOUD

From logs:
========================================
Checking /mnt/stateful_partition/unencrypted permission.
RemovePackFiles Failed
Touch(/mnt/stateful_partition/.install_completed) FAILED
Starting firmware updater (/tmp/install-mount-point/usr/sbin/chromeos-firmwareupdate --mode=recovery)
Command: /tmp/install-mount-point/usr/sbin/chromeos-firmwareupdate --mode=recovery
Starting Google_Caroline firmware updater v4 (recovery)...
 - Updater package: [Google_Caroline.7820.300.0 / EC:caroline_v1.9.375-8829f10 / PD:caroline_pd_v1.9.375-8829f10]
 - Current system:  [RO:Google_Caroline.7820.263.0 , ACT:Google_Caroline.7820.263.0 / EC:caroline_v1.9.357-ac5c7b4 / PD:caroline_pd_v1.9.357-ac5c7b4]
 - Write protection: Hardware: off, Software: Main=off EC=ON PD=off
Read the current FLMSTR values...
flashrom v0.9.4  : 2842dd9 : Jun 05 2017 23:54:51 UTC on Linux 3.18.0-14852-gd99af821993c (x86_64)
flashrom v0.9.4  : 2842dd9 : Jun 05 2017 23:54:51 UTC on Linux 3.18.0-14852-gd99af821993c (x86_64)
Calibrating delay loop... OK.
coreboot table found at 0x7aa4e000.
WARNING: SPI Configuration Lockdown activated.
Reading flash... SUCCESS
No need to modify image file.
recovery: update RO+RW
 * invoke: flashrom -p host --fast-verify -w bios.bin
 Execution failed (255): flashrom -p host --fast-verify -w bios.bin
 Messages:
Calibrating delay loop... OK.
coreboot table found at 0x7aa4e000.
Erasing and writing flash chip... Verifying flash... FAILED
flashrom v0.9.4  : 2842dd9 : Jun 05 2017 23:54:51 UTC on Linux 3.18.0-14852-gd99af821993c (x86_64)
flashrom v0.9.4  : 2842dd9 : Jun 05 2017 23:54:51 UTC on Linux 3.18.0-14852-gd99af821993c (x86_64)
WARNING: SPI Configuration Lockdown activated.
VERIFY FAILED at 0x000001f5! Expected=0x84, Read=0x82, failed byte count from 0x00000000-0x00ffffff: 0x1
Your flash chip is in an unknown state.
Get help on IRC at irc.freenode.net (channel #flashrom) or
mail flashrom@flashrom.org with FAILED: your board name in the subject line!
-------------------------------------------------------------------------------
DO NOT REBOOT OR POWEROFF!
ERROR: Execution FAILED.
ERROR: Execution failed: ./updater4.sh (error code = 1)
Finished after 48 seconds.
Failed Command: /tmp/install-mount-point/usr/sbin/chromeos-firmwareupdate --mode=recovery - Exit Code 1
Firmware update failed (error code: 1).
Rolling back update due to failure installing required firmware.
Successfully updated GPT with all settings to rollback.
PostInstall Failed
Running a hw diagnostics test -- this might take a couple minutes.
Checking blocks 0 to 30535679
====================================================

AUed to caroline-M60(9592.15.0) and its works fine.

This looks like the same issue we saw on Lili here http://b/37321721

Lili was fixed with this http://crrev.com/i/367610

This will effect dogfood devices when recovery attempt to overwrite RO 

Lili had this issue because it shares same disk image with lars, which has been already shipped with early firmware that SPI is locked.

Did Caroline also get ME update between 263 and 300?
Please find SKL firmware owners to verify that.

And here's the CL https://chrome-internal-review.googlesource.com/392088 if you are sure there is ME change. Otherwise this may be caused by something else and need flashrom experts to look at.

Re-assign to YH since the CL is already uploaded.
YH updated firmware from 263 to 300 so he should know the details - i.e., if ME has been changed or not.
Also, if RO change is not needed, a simple solution is to change RW_IMAGE only then you won't fall into this issue.

Duncan has set +2 to the CL so I'd assume the ME change is expected.

Danny/Tyler, can you also evaluate why this was not identified as part of FW qual?

re#10,
SPI descriptor was updated due to TPM clock adjustment on
https://buganizer.corp.google.com/issues/35584065. The fix landed on 7820.290.0.

looks like https://chrome-internal-review.googlesource.com/c/392088/ already CP-ed 

https://chrome-internal-review.googlesource.com/c/392088/ landed on 9636.0.0 (as Paris pointed out, too), and I tried 9636.0.0 recovery image without encountering problem neither.

The CL has been cherry-picked to R60 branch as https://chrome-internal-review.googlesource.com/#/c/392388/.

Thanks.

The following revision refers to this bug:
  https://chrome-internal.googlesource.com/chromeos/overlays/overlay-caroline-private/+/4aa90f2c86f3b85830fd91d5fa13c5ef9f45887c

commit 4aa90f2c86f3b85830fd91d5fa13c5ef9f45887c
Author: Hung-Te Lin <hungte@chromium.org>
Date: Mon Jun 12 16:07:12 2017

This bug requires manual review: M60 has already been promoted to the beta branch, so this requires manual review
Please contact the milestone owner if you have questions.
Owners: amineer@(Android), cmasso@(iOS), josafat@(ChromeOS), bustamante@(Desktop)

For more details visit https://www.chromium.org/issue-tracking/autotriage - Your friendly Sheriffbot

regarding to c#11

This bug should on ly happen to dogfooder since they have hardware write protect disabled.  Recovery will attempt to replace RO in this case.

We executed a reduce firmware test qual depends on RO/RW combination. The upgrade path for RO 7820.300.0 was not tested on M3/4GB caroline because 7820.300.0 is only for M7/16GB caroline

We will need to include dogfooder test case in the future.

 Issue 731945  has been merged into this issue.

The following revision refers to this bug:
  https://chrome-internal.googlesource.com/chromeos/overlays/overlay-caroline-private/+/e16c2b9fca736e6380cdafbd219a1f9306b5a44c

commit e16c2b9fca736e6380cdafbd219a1f9306b5a44c
Author: Hung-Te Lin <hungte@chromium.org>
Date: Tue Jun 13 02:23:20 2017

Able to recover M61 build 9647.0.0

Recovery is working fine on M60 build 9592.22.0

This issue has been approved for a merge. Please merge the fix to any appropriate branches as soon as possible!

If all merges have been completed, please remove any remaining Merge-Approved labels from this issue.

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For more details visit https://www.chromium.org/issue-tracking/autotriage - Your friendly Sheriffbot

This issue has been approved for a merge. Please merge the fix to any appropriate branches as soon as possible!

If all merges have been completed, please remove any remaining Merge-Approved labels from this issue.

Thanks for your time! To disable nags, add the Disable-Nags label.

For more details visit https://www.chromium.org/issue-tracking/autotriage - Your friendly Sheriffbot