The problem is that Xfwm's built-in compositor and virgl don't play nice
together.
Work-around: Boot the VM with virgl=off (on the video device) or gl=off
(on the display), run xfwm4-tweaks-settings in the VM, select the
"Compositor" tab, and uncheck "Enable display compositing". Then shut
down
I can't see anything graphics-related happening or going wrong.
This sounds like a lightdm problem. Maybe this is it:
Mar 28 10:16:56 testvm lightdm[934]: pam_succeed_if(lightdm:auth):
requirement "user ingroup nopasswdlogin" not met by user "test"
** Package changed: xorg-server (Ubuntu) =>
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