To me, this says that some part of the compiler toolchain was very broken, since you shouldn't ever be getting an error about a slot illegal instruction in compiled code. If you were working with something in assembler I could see it, but not something you just compiled that was written in C or C++.
I'd suspect that your binutils was indeed broken, and you probably need to redownload the entire ISO to fix it, unfortunately. Binutils contains a couple of vital pieces of the compiling setup (namely the assembler and linker), so if one of them is broken it could indeed be producing broken code.
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