James, I can also reproduce it most of the time just by booting. It just is not 
always consistent. After the two "good" reboot runs I did shut down the guest 
and then start it again which brought things back to failing and this time 
removing "quiet vt_handoff" does not work either. In this case trying to bring 
up the unity desktop seems to fail as well. Currently the only consistent 
option seems to be "nomodeset" which allows have a ligthdm and to switch to 
text console, but fails to bring up the unity desktop.
Feels like a race in some of the parts involved.

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https://bugs.launchpad.net/bugs/1038055

Title:
  graphics fail to initialise correctly, in kvm with cirrus graphics
  (after LUKS install)

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