Thank you for your bug report. It is not obvious from the information
you've provided why the second session fails to start. Could you please
try switching user, and then attaching your /var/log/Xorg.20.log and
/var/log/Xorg.20.log.old files if you have them?
Thanks
** Changed in: xorg-server (Ubuntu)
Sourcepackagename: xorg => xorg-server
Importance: Undecided => Medium
Status: New => Incomplete
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guest session, switch user, fail, "cannot start new display"
https://bugs.launchpad.net/bugs/330153
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