To all those who could hardly await a fix: Since it is closed source
driver, this issue has to be resolved upstream. So far, Nvidia has not
provided an update, although (according to Aaron Plattner) they are
working on it [1]. Just downgrading isn't always preferable, either.
Last update was supposed to fix a security problem so you will leave
your system vulnerable by rolling back to an earlier version. Waiting
for upstream seems to be the only reasonable choice.

You have several options, though:
* temporarily(?) switch to nouveau
* use a non-composited desktop (some apps will fail but you can login)
* replace the card (304 driver series is going to be discontinued anyway)

[1] http://goo.gl/2RQUjB

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to nvidia-graphics-drivers-304 in Ubuntu.
https://bugs.launchpad.net/bugs/1639180

Title:
  no login possible after update to nvidia 304.132

Status in nvidia-graphics-drivers-304 package in Ubuntu:
  Confirmed
Status in nvidia-graphics-drivers-legacy-304xx package in Debian:
  Confirmed

Bug description:
  Ubuntu 16.04 LTS

  NVIDIA driver:
  - nvidia-graphics-drivers-304
  - update to version 304.132

  dpkg.log:
  upgrade nvidia-304-updates:amd64 304.131-0ubuntu3 304.132-0ubuntu0.16.04.2

  - reboot
  - lightdm login screen
  - login
  - a few seconds some flickering
  - and the lightdm login screen appears again

  It is not possible to login. Unity is not loading.

  .xsession-errors:
  X Error of failed request:  BadValue (integer parameter out of range for 
operation)
    Major opcode of failed request:  155 (GLX)
    Minor opcode of failed request:  3 (X_GLXCreateContext)
    Value in failed request:  0x0
    Serial number of failed request:  34
    Current serial number in output stream:  35

  See also bug 1634802

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