I found out the solution and my system is starting properly now with 1709 - Fall Creators Update installed and VT-x enabled.
I post my solution, cause maybe someone else is experiencing similar problem.
System was not starting even from cd, so I started to deal with bios settings.
After turning off VT-x functions system magically booted, but without virtualization support, which I need in vagrant for example, so in the end this option was no go for me.
Finally, I went through other BIOS settings, turned VT-x functions back on and turned on HD Audio in motherboard peripherals (I had it off since I am using another audio card).
Now everything works properly.
So that was the trick turning on HD Audio.
I know that this solution sounds ridiculous and makes no sense, so I double checked it and turning HD Audio off caused system to freeze at boot again.
I believe this kind of error is tightly coupled with my specific (almost vintage) system configuration.
I suspect the problem might be in really old BIOS (although latest ver) in my Motherboard so I post my system configuration:
- DFI LANparty UT X58-T3eH8
- Intel i7 965 Extreme
- 12 GB Ram
- Samsung SSD 850 Pro
- Nvidia GeForce GTX 280
- Sound Blaster X-Fi Xtreme Audio