So it's this code in .profile that made logging in impossible:
https://gist.github.com/850855
Removing it, and everything works fine. I can't remember having added it
manually, so I'm not sure how I ended up with this piece of code in the
first place. Problem solved though.
** Changed in: ubuntu
Status: New => Invalid
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https://bugs.launchpad.net/bugs/826980
Title:
Can't login, passphrase dialog returns to login screen
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