I can reproduce this.  Moving to the xorg package, source of x11-common
which is responsible for the failsafe X bits.

** Package changed: xserver-xorg-video-intel (Ubuntu) => xorg (Ubuntu)

** Changed in: xorg (Ubuntu)
   Importance: Undecided => Medium

** Changed in: xorg (Ubuntu)
       Status: New => Confirmed

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create new configuration option does nothing whe you press OK
https://bugs.launchpad.net/bugs/565490
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