Problem: Blancco Mobile Diagnostics and Erasure hangs during login/logout
Reason: This might happen if there is NVIDIA graphics card in the system.
Solution: Press 'e' in GRUB (the bootloader screen in the beginning with booting options), go to the line that starts with "linux (loop)/arch/boot" and add the following to the end of it "iommu=pt nouveau.modeset=0" (without the quotes). Then press Ctrl-x or F10 to boot.