Can you test if this solves the problem?
Replace:
DESKTOP_SESSION=$(echo $1 | sed "s/gnome-session --session=//g"
With:
DESKTOP_SESSION=$(grep -l "^Exec=$1\$" /usr/share/xsessions/*.desktop
2>/dev/null | sed -n '1 s,.*/\(.*\)\.desktop,\1,p')
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https://bugs.launchpad.net/bugs/1330252
Title:
ubuntu 14.04 ltsp-server /etc/X11/Xsession.d/40-ltsp-server
DESKTOP_SESSION breaks lubuntu-desktop login
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