Installed latest build using Testdrive and KVM and problem was reproduced. 
Installed a fresh copy manaully from the iso into Virtualbox and didn't have 
the issue.
Attached screenshot of what the login prompt looks like in the test using KVM.

** Attachment added: "login_anomaly.png"
   
https://bugs.launchpad.net/ubuntu/+source/ubiquity/+bug/1059083/+attachment/3369803/+files/login_anomaly.png

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https://bugs.launchpad.net/bugs/1059083

Title:
  "Log in automatically" choice does not work.

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