This was due to a change in the X server to disable listening on TCP by default:
http://cgit.freedesktop.org/xorg/xserver/commit/?id=cc59be38b7eff52a1d003b390f2994c73ee0b3e9
** Changed in: lightdm (Ubuntu)
Status: New => Triaged
** Changed in: lightdm (Ubuntu)
Importance: Undecided => Medium
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https://bugs.launchpad.net/bugs/1449282
Title:
xserver-allow-tcp features doesn't work with Xorg version 1.16.0
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