This bug I believe is the same as bug 769650 which says its the hardware
limitation as the issue does not happen if the monitors are set in 'One
above the other' or 'mirror displays' is ticked. Ubuntu could do things
gracefully. bug 555641 is also on a similar issue.

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https://bugs.launchpad.net/bugs/823437

Title:
  Connecting external monitor causes primary display to garble

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