I am running Xubuntu 20.04 as both my host and guest, and I ran into
this same issue. The root cause is that GCC is missing in the guest,
which is required to build the kernel modules. You can install it using
this command:

sudo apt-get install build-essential

Once it's installed, you need to at least attempt rebuilding the kernel
modules:

sudo /sbin/rcvboxadd quicksetup all

NOTE: previous versions of VirtualBox used the following command
instead:

sudo /sbin/vboxconfig

If trying to rebuild the modules doesn't work, try reinstalling
VirtualBox Guest Additions entirely (run these inside of the mounted
Guest Additions ISO directory):

cd /media/*/*/
sudo ./VBoxLinuxAdditions.run

Here are my software versions for reference:

On the host (Xubuntu 20.04):

lsb_release -r
Release:        20.04

dpkg -l virtualbox virtualbox-guest-additions-iso
virtualbox                              6.1.16-dfsg-6~ubuntu1.20.04.1
virtualbox-guest-additions-iso          6.1.16-1~ubuntu1.20.04.1

VirtualBox version from Help->About Dialog:
6.1.16_Ubuntu r140961

On the guest (Xubuntu 20.04):

lsb_release -r
20.04

VBoxClient --version
6.1.16r140961

gcc --version
9.3.0

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https://bugs.launchpad.net/bugs/1873922

Title:
  20.04 not compatible with virtualbox-guest-x11: Fails changing display

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