I have just built a fresh pi3 with the official touchscreen all works perfect until I install the touchscreen plugin and after a reboot I get a kernel panic. Any advice? Is this a known issue?
I encountered this same issue this morning, also with a rpi3 and just after installing the touch display plugin on a fresh install.
Yep, same here. Pi 3, will not boot after touch screen plugin install.
After attempting various different things with the newest build I decided to install the previous release 2.041 and that does not have the same issue and is working for me for the time being. Looks like a bug in the new release 2.114 which i see was only released yesterday (03/03/2017) so looks like a bug has crept into that build.
i’m seeing this too 
I opened a bug and added a screenshot of the issue I saw (I assume it’s the same as everyone else):
github.com/volumio/volumio-plugins/issues/54
So - anyone know what the issue is / who can fix it?
Thanks!
The team is working on it
please refer to this.
Panic issue solved, but plugin not fully working yet: any help appreciated there.