I can confirm that upgrading to 18.10 solves this issue. While there are
still a few caveats (e.g. toolbar becoming intransparent when launching
an application), the hardware which failed before can now log into
'Ubuntu' as well as 'Ubuntu on Wayland'.

Well done, Ubuntu, thank you very much!

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https://bugs.launchpad.net/bugs/1727356

Title:
  Login screen never appears on early generation Intel GPUs (Core2 and
  Atom etc)

Status in mutter package in Ubuntu:
  Fix Released
Status in mutter source package in Bionic:
  Triaged
Status in mutter source package in Cosmic:
  Fix Released

Bug description:
  https://gitlab.gnome.org/GNOME/mutter/issues/127

  ---

  Wayland sessions (including the login screen itself) don't start up on
  older Intel GPUs.

  ---

  Workaround:

  Ctrl+Alt+F4, log in, edit /etc/gdm3/custom.conf and uncomment the line:
  #WaylandEnable=false

  ---

  $ lsb_release -rd
  Description:  Ubuntu 17.10
  Release:      17.10

  Upgraded from 17.04 today.

  Steps to reproduce:

  - Start the PC or log out/end session in case it's running with an Xorg 
desktop already.
  - Attempt to log in, using 'Ubuntu'

  Expected to happen:

  Desktop appears.

  Actually happening:

  5 seconds of black screen, then the login screen appears again.

  Partial diagnosis:

  - Logging in using 'Ubuntu on Xorg' works fine and as expected.

  - Extracted a syslog of such a failed attempt, see attached file.
  ---
  ApportVersion: 2.20.7-0ubuntu3.1
  Architecture: amd64
  CurrentDesktop: ubuntu:GNOME
  DisplayManager: gdm3DistroRelease: Ubuntu 17.10
  InstallationDate: Installed on 2016-05-04 (539 days ago)
  InstallationMedia: Ubuntu 16.04 LTS "Xenial Xerus" - Release amd64 
(20160420.1)
  Package: gnome-shell 3.26.1-0ubuntu5
  PackageArchitecture: amd64
  ProcVersionSignature: Ubuntu 4.13.0-16.19-generic 4.13.4
  Tags: artful package-from-proposed third-party-packages
  Uname: Linux 4.13.0-16-generic x86_64
  UpgradeStatus: Upgraded to artful on 2017-10-25 (0 days ago)
  UserGroups: adm cdrom dialout dip lpadmin plugdev sambashare sudo www-data
  _MarkForUpload: True

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