The filesystem containing /dev has been damaged somehow. You should fsck it. Most likely fsck will remove /dev/lvm so you'll have to recreate it with proper values. Don't just rm it. Something bad has obviously happened and changing things without a proper fsck can make things worse.
i'm happy to report a fsck of the root filesystem fixed the problem. now why didn't i do that in the first place? :)
it didn't remove /dev/lvm though, it just repaired it. thanks to all for their suggestions.
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