Yes, it reproduces consistently, whether the X Server is started by GDM or 
xinit.  The following 1 line .xinitrc reproduces it:
exec /usr/bin/gnome-session --sync

The exec and --sync are surely superfluous.

netstat -anp
after booting shows no port being occupied by a settings daemon; yet
tail -f .xsession-errors
shows new attempts about 1/(5s) .

running
$ gnome-settings-daemon --no-daemon
** (gnome-settings-daemon:12817): WARNING **: Failed to acquire 
org.gnome.SettingsDaemon
** (gnome-settings-daemon:12817): WARNING **: Could not acquire name

Exits immediately with status 0.
I think those warnings are an important clue.

wireshark shows repeated attempts on addresses 127.0.0.1 & ::1 to
connect to TCP port 4713, which is unoccupied & response is RST.

These problems happen even if the iptables firewall is deactivated as shown by
iptables -L

-- 
"Connection failed, reconnecting" repeatedly
https://bugs.launchpad.net/bugs/461723
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