Seems to be fixed now (using gnome-shell 3.24.2-0ubuntu6)
The screen now fades out and locks. Even though I'm still using lightdm.
** Changed in: gnome-shell (Ubuntu)
Status: Triaged => Fix Released
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https://bugs.launchpad.net/bugs/1692762
Title:
[screensaver] Screen never blanks in Gnome Shell when using LightDM
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