I was able to get the update to install by clearing data from some apps and doing the hard reset. It seemed to work fine until i received my first phone call after the update. The phone froze when I tried to hang up at the end of the call, and I had no choice but to pull the battery. When I put it back in, it did a complete factory reset without any warnings/prompts/etc. After a couple of hours of getting everything back on the phone mostly the way it was before the reset, it seems to be working fine. This happened yesterday, and I did not get a 2:00 AM reboot.
Hopefully it works fine going forward, but that surprise reset really stinks since I couldn't back anything up before it happened.
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