This is really 2 seperate issues

First, ubiquity-dm is failing to load, due to some presumably racy GPU
issue. I then guess casper has not run yet, so the autologin settings
are not yet applied. Finally after some delay systemd decides to spawn
gdm.

The second issue I have file as Bug 1561302. gdm currently won't allow
for passwordless login

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https://bugs.launchpad.net/bugs/1548864

Title:
  Ubuntu GNOME Xenial live image boots to tty1 and demands password

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