I've reproduced this; indeed, from that point I can switch to a shell
prompt but can't start any processes at all, so something is badly
wrong. I have no idea what's causing it, though, and the aforementioned
symptom makes it rather hard to investigate ...
** Changed in: ubuntu
Status: New => Confirmed
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desktop/live cd netboot won't boot X
https://bugs.launchpad.net/bugs/271958
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